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, ~7,216 words.
Account value recursion:. Type A death benefit is level at Face Amount. NAR = FA − AV. Type B death benefit equals FA + AV. NAR = FA, constant. CoI charge:. is the contract mortality rate, usually conservative. Corridor rule forces to preserve life insurance tax treatment. When the corridor...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 6a
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