lifecontingencies (version 1.3.1)

Axn: Function to evaluate life insurance.

Description

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

Usage

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

Arguments

actuarialtable

An actuarial table object.

x

Age of the insured.

n

Coverage period, if missing the insurance is considered whole life \(n=\omega-x-m\)

i

Interest rate (overrides the interest rate slot in actuarialtable).

m

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

k

Number of periods per year at the end of which the capital is payable in case of insured event, default=1 (capital payable at the end of death year).

type

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

power

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

Value

A numeric value representing either the actuarial value of the coverage (when type="EV") or a number drawn from the underlying 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

The variance calculation has not 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

# NOT RUN {
	
		#assume 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 relevant life contingencies relationship
		k=12
		i=0.06
		j=real2Nominal(i,k)
		Axn(soa08Act, 30,k=12)
		i/j*Axn(soa08Act, 30,k=1)
	
# }