Relationships Between Insurance, Endowment, and Annuity Present Values
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Present Value Random Variables for Long-Term Insurance Coverages. 11 min read, ~1,605 words.
Master identity: (annual), (continuous). Endowment decomposition: (term + pure endowment). Whole life splitting: (temporary + deferred). Term shortcut:. Pure endowment bridge: links ages and contract types, appearing in every deferred formula. Match the discount rate to the payment type: for due, for continuous, for -thly.
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 9c
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