Calculate policy values for insurance and annuities on joint lives.

Free SOA Exam ALTAM (Advanced Long-Term Actuarial Mathematics) lesson in Joint Life Insurance and Annuities. 63 min read, ~9,459 words.

Prospective reserve:, computed in EACH non-absorbing state (a 4-state contract carries one reserve per non-absorbing state). Thiele recursion:, one ODE per state; integrate with Euler, where step size h controls accuracy. Independent lives:; under the Common Shock model, adding to every transition into both-dead. Independence test: confirm and; one failure...

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