Chapter 3. Life Insurance.
Manual for SOA Exam MLC.
Chapter 4. Life Insurance.
Section 4.9. Computing APV's from a life table.
c 2009. Miguel A. Arcones. All rights reserved.
"Arcones' Manual for the SOA Exam MLC. Fall 2009 Edition".
available at http://www.actexmadriver.com/
c 2009. Miguel A. Arcones. All rights reserved. Manual for SOA Exam MLC.
Chapter 3. Life Insurance. Section 3.9. Computing APV's from a life table.
Computing APV's from a life table
Usually, survival functions do not have an analytical form. In this
section, we will consider the computation of some of the present
values of life insurance products using a life table. Suppose that x
is known whenever x is a nonnegative integer. Then, we can find
npx , whenever x and n are integers.
Assuming a uniform distribution of deaths over each year of death,
K(x) and Sx = Tx - K(x) are independent r.v.'s and Sx has a