lifecontingencies (version 1.3.1)

DAxn: Decreasing life insurance

Description

This function evaluates the n-year term decreasing life insurance. Both actuarial value and stochastic random sample can be returned.

Usage

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

Arguments

actuarialtable

An actuarial table object.

x

Age of the insured.

n

Length of the insurance period.

i

Interest rate, when present it overrides the interest rate of the actuarial table object.

m

Deferring period, even fractional, assumed 1 whether missing.

k

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

type

Default value is "EV", where APV is returned. "ST" returns a sample from the underlying present value of benefits distribution.

power

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

Value

A numeric value representing the expected value or the simulated value.

Warning

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

Details

Formulas of Bowes book have been implemented.

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

Axn,IAxn

Examples

# NOT RUN {
		#using SOA illustrative life tables
		data(soaLt)
		soa08Act=with(soaLt, new("actuarialtable",interest=0.06,
		x=x,lx=Ix,name="SOA2008"))
		#evaluate the value of a 10 years decreasing term life insurance for an aged 25
		DAxn(actuarialtable=soa08Act, x=25, n=10) 
# }