Actuarial Science II - Actuarial Calculations
7 important questions on Actuarial Science II - Actuarial Calculations
What three things do you need for an actuarial calculation?
- Probability of death of individual in a period of time
- Interest rate which can be earned on invested funds
What is lx, dx, px, qxand their formulas
- lx+1 = lx - dx
- px = lx+1/lx
- qx = dx/lx = 1-px
lx being number of survivors at x
px is survival rate from lx to lx+1
qx is mortality rate of age x to x+1
What is the remaining life expectancy at the age of x?
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3 tips to avoid calculation errors
- be precise
- check when payments are due (due/immediate)
- check probabilities of payments!
What is a n-year term insurance
What is a n-year pure endowment insurance?
n payments at the end of n years if alive
What is a n-year endowment insurance?
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