Life Annuities
First published:
ISBN: 978-1-78272-438-4
If you are a Risk.net subscriber you are entitled to 20% off your Risk books purchases. Please email enquiries@riskbooks.com for more information.
As part of your Risk.net subscription you are entitled to 20% off all of your Risk Books purchases. If you would like to place an order please email enquiries@riskbooks.com
Multi-life annuity products
Multi-life annuity products
Preface
From annuities to life annuities
Basic products and their relevant actuarial features
Multi-life annuity products
Towards more complex product design
Annuities: time frames
Guarantee structures
Options and rider benefits
Benefit profiles
Risk classification: annuity rates
Cross-subsidy in life annuities
Health-related annuities
Life annuities: the players
References
3.1 INTRODUCTION: FROM SINGLE-LIFE TO MULTI-LIFE ANNUITIES
The expression “multi-life annuity products” denotes contingent annuities that involve a group of individuals. At any point in time, the annuity payments depend on the current “status” of the group, ie, on which individuals out of the initial group as at the time of policy issue are alive.
The number of possible contingency arrangements depends on the initial size of the group, and may be huge if the group itself initially consists of many individuals. Nevertheless, a limited number of arrangements of practical interest can be singled out, notably if groups of two individuals are addressed.
Moving from single-life annuities to multi-life annuities, whatever the number of individuals may be, requires appropriate extensions of the actuarial structure.
In this chapter, we first present the biometric model, which can be used to express the random lifetimes of two individuals in quantitative terms. Following the logical structure of Chapter 2, we define expected present values (ie, actuarial values) of annuity benefits, which are then used for premium and reserves calculations. Numerical examples are provided for a
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
