T
therayofhope
Member
Hi, got a very last minute question and it seems very confusing to the use of ultimate (with []) and the select mortality in chapter 24 in the numerical examples on the pricing of mortality option. So do we use select mortality for all the new policies and ultimate when we are calculating the option?
Also, what makes things worse is occasionally the question will say mortality of standard lives is select and mortality after taking up will become ultimate. My question is, say we are handling an increase in benefit option, do we assume that the client switch from select to ultimate on their original coverage?
Also, what makes things worse is occasionally the question will say mortality of standard lives is select and mortality after taking up will become ultimate. My question is, say we are handling an increase in benefit option, do we assume that the client switch from select to ultimate on their original coverage?