Hi everyone, I was wondering if someone could tell me why the premium is discounted in the expected PV of the benefits for this question. I get that during periods of benefit, the premium is waived. So since it's waived, why is it discounted? Thanks much.
Premium Waiver - LTC Premium waived is a 'benefit' to policy holder. The premium that might be waived should also be discounted - valuing as another benefit on the policy such as sick benefit as in first term. The discounted premium term is only to reflect the value of that benefit. This is not the premium being collected, while it is actually the one waived. Let me know if not clear... Thanks, Raj
