Present Value Random Variables for Life Insurance, Endowment, and Annuity Payments
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Present Value Random Variables for Long-Term Insurance Coverages. 15 min read, ~2,275 words.
Insurance PV: (continuous) or (annual). The "+1" matters: benefit is paid at end of year of death. Annuity PV: (due) or (continuous). Annuity is a linear function of insurance. Term insurance: if insured survives. Pure endowment: if insured dies. Endowment: always pays,. Endowment = term + pure endowment; pure endowment...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 9a
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