A. function

Life Insurance

Calculates the present value of the life insurance.

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 fractions 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 value of the payment.

Returns

Returns a numeric value (actuarial present value).

Examples

A.(50,0,8,1,0.04,CSO80MANB,1,"none",1)
A.(60,3,10,1,0.04,CSO80MANB,1,"none",1)
A.(21,4,7,3,0.04,CSO80MANB,1,"constant",1)
A.(23,4,6,12,0.04,CSO80MANB,1,"UDD",1)

References

Chapter 3 of Life Contingencies (1952) by Jordan, chapter 4 of Actuarial Mathematics (1997) by Bowers, Gerber, Hickman, Jones & Nesbitt.