Actuaries frequently employ probability models to analyse situations involving uncertainty. They are also not simply interested in modelling the future states of a subject but also model cash flows associated with future states. This study compared single life status and multiple life statuses using life functions. The expected time until death, annuity payments, insurance payable and premiums were estimated using age as a risk factor. The analysis also employed the De Moirve’s law on mortality in estimating the rate of mortality. The analysis revealed that, the expected time until death for single life status and multiple life statuses are all increasing functions of age. It was realized also that, the premium for single life status was increasing with age and the same with multiple life statuses. But the premium for single life was higher than multiple life statuses. In the case of the multiple life statuses, it was revealed that, premium for joint life was higher than the last survivor and that a change in the interest rate or force of interest and the benefit did not changed the trend in premium payments.
| Published in | American Journal of Theoretical and Applied Statistics (Volume 5, Issue 3) |
| DOI | 10.11648/j.ajtas.20160503.17 |
| Page(s) | 123-131 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2016. Published by Science Publishing Group |
Single Life Status, Multiple Life Statuses, Annuity, Insurance and Premium
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APA Style
Abonongo John, Luguterah Albert. (2016). Actuarial Analysis of Single Life Status and Multiple Life Statuses. American Journal of Theoretical and Applied Statistics, 5(3), 123-131. https://doi.org/10.11648/j.ajtas.20160503.17
ACS Style
Abonongo John; Luguterah Albert. Actuarial Analysis of Single Life Status and Multiple Life Statuses. Am. J. Theor. Appl. Stat. 2016, 5(3), 123-131. doi: 10.11648/j.ajtas.20160503.17
AMA Style
Abonongo John, Luguterah Albert. Actuarial Analysis of Single Life Status and Multiple Life Statuses. Am J Theor Appl Stat. 2016;5(3):123-131. doi: 10.11648/j.ajtas.20160503.17
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Download@article{10.11648/j.ajtas.20160503.17,
author = {Abonongo John and Luguterah Albert},
title = {Actuarial Analysis of Single Life Status and Multiple Life Statuses},
journal = {American Journal of Theoretical and Applied Statistics},
volume = {5},
number = {3},
pages = {123-131},
doi = {10.11648/j.ajtas.20160503.17},
url = {https://doi.org/10.11648/j.ajtas.20160503.17},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20160503.17},
abstract = {Actuaries frequently employ probability models to analyse situations involving uncertainty. They are also not simply interested in modelling the future states of a subject but also model cash flows associated with future states. This study compared single life status and multiple life statuses using life functions. The expected time until death, annuity payments, insurance payable and premiums were estimated using age as a risk factor. The analysis also employed the De Moirve’s law on mortality in estimating the rate of mortality. The analysis revealed that, the expected time until death for single life status and multiple life statuses are all increasing functions of age. It was realized also that, the premium for single life status was increasing with age and the same with multiple life statuses. But the premium for single life was higher than multiple life statuses. In the case of the multiple life statuses, it was revealed that, premium for joint life was higher than the last survivor and that a change in the interest rate or force of interest and the benefit did not changed the trend in premium payments.},
year = {2016}
}
TY - JOUR T1 - Actuarial Analysis of Single Life Status and Multiple Life Statuses AU - Abonongo John AU - Luguterah Albert Y1 - 2016/05/10 PY - 2016 N1 - https://doi.org/10.11648/j.ajtas.20160503.17 DO - 10.11648/j.ajtas.20160503.17 T2 - American Journal of Theoretical and Applied Statistics JF - American Journal of Theoretical and Applied Statistics JO - American Journal of Theoretical and Applied Statistics SP - 123 EP - 131 PB - Science Publishing Group SN - 2326-9006 UR - https://doi.org/10.11648/j.ajtas.20160503.17 AB - Actuaries frequently employ probability models to analyse situations involving uncertainty. They are also not simply interested in modelling the future states of a subject but also model cash flows associated with future states. This study compared single life status and multiple life statuses using life functions. The expected time until death, annuity payments, insurance payable and premiums were estimated using age as a risk factor. The analysis also employed the De Moirve’s law on mortality in estimating the rate of mortality. The analysis revealed that, the expected time until death for single life status and multiple life statuses are all increasing functions of age. It was realized also that, the premium for single life status was increasing with age and the same with multiple life statuses. But the premium for single life was higher than multiple life statuses. In the case of the multiple life statuses, it was revealed that, premium for joint life was higher than the last survivor and that a change in the interest rate or force of interest and the benefit did not changed the trend in premium payments. VL - 5 IS - 3 ER -
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