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Statistical Methods with Applications to Demography and Life Insurance
book

Statistical Methods with Applications to Demography and Life Insurance

by Estate V. Khmaladze
March 2013
Intermediate to advanced content levelIntermediate to advanced
242 pages
5h 47m
English
Chapman and Hall/CRC
Content preview from Statistical Methods with Applications to Demography and Life Insurance
146 Life insurance and net premiums
and its expected value is
p
Z
m
0
e
ρs
1 F(x + s)
1 F(x)
ds. (12.9)
Therefore as an equation for the net premium we obtain
p
Z
m
0
e
ρs
1 F(x + s)
1 F(x)
ds = c
Z
0
e
ρs
f (x + s)
1 F(x)
ds,
and hence
p
x,ρ
= c
R
0
e
ρs
f (x + s) ds
R
m
0
e
ρs
[1 F(x + s)] ds
. (12.10)
Since the denominator now is smaller than in (12.5), the premium is
now higher. This is of course as expected: the same benefit is being
paid for over what is usually going to be a shorter period.
Term life insurance. In fixed term life insurance contracts the
amount c is payable at the moment of death, if a person A of age x
dies before the age of x + m. Otherwise, the insured ...
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Publisher Resources

ISBN: 9781466505742