Understand the cashflows and calculate account values and benefits under Type A and Type B Universal Life policies.
Free SOA Exam ALTAM (Advanced Long-Term Actuarial Mathematics) lesson in Universal Life Insurance. 48 min read, ~7,274 words.
Account value recursion:; credit interest after expense, before deducting CoI. Type A death benefit is level at Face Amount, so NAR = FA minus AV shrinks as the fund grows. Type B death benefit equals FA + AV, so NAR = FA, constant in every year. CoI charge:; is the...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 6a
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