Calculate premiums for insurance and annuities on joint lives using the equivalence principle.
Free SOA Exam ALTAM (Advanced Long-Term Actuarial Mathematics) lesson in Joint Life Insurance and Annuities. 80 min read, ~11,941 words.
Joint life status fails at the first death. Last survivor fails at the second. Survival identity:, so and. Term-version of identity: and similarly for term/endowment insurances. Pure endowment chain:; under independence. Annuity recursion:. Independence:. With common shock, multiply by. Common lifestyle and broken-heart effects also break independence. Equivalence principle: premium.
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Example 6
- Example 7
- Example 8
- Example 9
- Example 10
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 3c
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