IAxn {lifecontingencies}

Increasing life insurance

Description

This function evaluates the APV of an increasing life insurance. The amount payable at the end of year of death are: 1, 2, \ldots, n-1, n. N can be set as \omega-x-1.

Usage

IAxn(actuarialtable, x, n,i=actuarialtable@interest,  m = 0, k=1, type = "EV", power=1)

Arguments

actuarialtable

The actuarial table used to perform life - contingencies calculations.

x

The age of the insured.

n

The term of life insurance. If missing n is set as n=\omega - x - m -1.

i

Interest rate (overrides the interest rate of the actuarialtable object).

m

The deferring period. If missing, m is set as 0.

k

Number of fractional payments per period. Assumed to be 1 whether missing.

type

A string, either "EV" for expected value of the actuarial present value (default) or "ST" for one stochastic realization of the underlying present value of benefits. Alternatively, one can use "expected" or "stochastic" respectively (can be abbreviated).

power

The power of the APV. Default is 1 (mean).

Details

The stochastic value feature has not been implemented yet.

Value

A numeric value.

Warning

The function is provided as is, without any guarantee regarding the accuracy of calculation. The author disclaims any liability for eventual losses arising from direct or indirect use of this software.

Author(s)

Giorgio A. Spedicato

References

Actuarial Mathematics (Second Edition), 1997, by Bowers, N.L., Gerber, H.U., Hickman, J.C., Jones, D.A. and Nesbitt, C.J.

See Also

DAxn

Examples

		#assumes SOA example life table to be load
		data(soaLt)
		soa08Act=with(soaLt, new("actuarialtable",interest=0.06,
		x=x,lx=Ix,name="SOA2008"))
		#evaluate the value of a 10 years increasing term life insurance for an aged 25
		IAxn(actuarialtable=soa08Act, x=25, n=10)