Avg. {DetLifeInsurance}

Varying Life Insurance: Geometric Progression

Description

Calculates the present value of a varying life insurance according to a geometric progression.

Usage

Avg.(
  x,
  h,
  n,
  k = 1,
  r,
  i = 0.04,
  data,
  prop = 1,
  assumption = "none",
  variation = "none",
  cap = 1
)

Arguments

x

An integer. The age of the insuree.

h

An integer. The deferral period.

n

An integer. Number of years of coverage.

k

An integer. Fractions per year.

r

The variation rate. A numeric type value.

i

The interest rate. A numeric type value.

data

A data.frame of the mortality table, with the first column being the age and the second one the probability of death.

prop

A numeric value. It represents the proportion of the mortality table being used (between 0 and 1).

assumption

A character string. The assumption used for fractional ages ("UDD" for uniform distribution of deaths, "constant" for constant force of mortality and "none" if there is no fractional coverage).

variation

A character string. "inter" if the variation it's interannual or "intra" if it's intra-annual.

cap

A numeric type value. Amount insured for the first year/period.

Value

Returns a numeric value (actuarial present value).

References

Chapter 4 of Actuarial Mathematics for Life Contingent Risks (2009) by Dickson, Hardy and Waters.

Examples

Avg.(33,0,5,1,0.8,0.04,CSO80MANB,1,"none","none",1)
Avg.(26,2,4,1,0.4,0.04,CSO80MANB,1,"none","none",1)
Avg.(25,0,15,2,0.25,0.04,CSO80MANB,1,"constant","inter",1)
Avg.(37,10,10,4,0.05,0.04,CSO80MANB,1,"constant","intra",1)
Avg.(40,5,20,6,0.04,0.04,CSO80MANB,1,"UDD","inter",1)
Avg.(20,0,80,12,0.01,0.04,CSO80MANB,1,"UDD","intra",1)