Calculate reserves for no-lapse guarantees.

Free SOA Exam ALTAM (Advanced Long-Term Actuarial Mathematics) lesson in Universal Life Insurance. 16 min read, ~2,425 words.

An NLG keeps a UL contract in force past account-value exhaustion, overriding the normal lapse rule, as long as a premium test is satisfied. Two test designs dominate: a cumulative premium test compares paid premiums to a stipulated schedule, while a shadow account tracks a virtual fund using guarantee-basis credits...