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. 78 min read, ~11,634 words.
Joint life status fails at the first death, i.e.; last survivor fails at the second. Additive identity: gives (minus, not plus) and; holds for term versions too. Independence: and; common shock adds (multiply by ); lifestyle and broken-heart also break independence. Recursions:, and; use, not. Equivalence principle: net premium; the...
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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
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 3c
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