lifecontingencies (version 0.0.3)

Axn: Function to evaluate life insurance.

Description

This function evaluates n-year term life insurance and whole life.

Usage

Axn(actuarialtable, x, n, i,m, k=1, type = "EV")

Arguments

actuarialtable

An actuarial table object.

x

Age of the insured.

n

Duration of insurance, if missing the insurance is considered whole life $n=\omega-x-m-1$

i

Interest rate (overrides the interest rate of the actuarial table object).

m

Deferring period, even fractional, if missing assumed to be 0.

k

Number of periods per year, default=1.

type

A string, either "EV" (default value) or "ST".

Value

• A numeric value representing either the actuarial value of the coverage (type="EV") or a number drawn from the stochastic distribution of Axn.

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

Neither fractional periods nor the variance calculation have been implemented yet.

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, Exn

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 40 years term life insurance for an aged 25
		Axn(actuarialtable=soa08Act, x=25, n=40) 
		#check an actuarial relevant relationship
		k=12
		i=0.06
		j=k*((1+i)^(1/k)-1)
		Axn(soa08Act, 30,k=12)
		i/j*Axn(soa08Act, 30,k=1)