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. 62 min read, ~9,362 words.
Prospective reserve:, where EPV (expected present value of future cash flows) is computed in EACH joint state (xy, x only, y only). Independent lives:; use this to discount the joint-life leg. Last-survivor identity:. Reserves and annuities decompose the same way. Thiele recursion:, one ODE per state. Common Shock model: add...
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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
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 3d
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