| a {DetLifeInsurance} | R Documentation |
Life Annuities
Description
Calculates the present value of a life annuity.
Usage
a(x, h, n, k = 1, i = 0.04, data, prop = 1, assumption = "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. Number of payments per year. |
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). |
cap |
A numeric type value. The annualized value of the payment. |
Value
Returns a numeric value (actuarial present value).
References
Chapter 2 of Life Contingencies (1952) by Jordan, chapter 5 of Actuarial Mathematics (1997) by Bowers, Gerber, Hickman, Jones & Nesbitt.
Examples
a(20,0,15,1,0.04,CSO58FALB,1,"none",1200)
a(23,7,9,1,0.04,GAM71F,1,"none",5000)
a(33,3,10,4,0.04,CSO80MANB,1,"constant",3000)
a(20,5,10,4,0.04,CSO58MANB,1,"UDD",5000)