15. Simplifications Under Level Benefit Contracts

  1. S. David Promislow

Published Online: 14 JAN 2011

DOI: 10.1002/9781119971528.ch15

Fundamentals of Actuarial Mathematics, Second Edition

Fundamentals of Actuarial Mathematics, Second Edition

How to Cite

Promislow, S. D. (2010) Simplifications Under Level Benefit Contracts, in Fundamentals of Actuarial Mathematics, Second Edition, John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9781119971528.ch15

Author Information

  1. York University, Toronto, Canada

Publication History

  1. Published Online: 14 JAN 2011
  2. Published Print: 17 DEC 2010

ISBN Information

Print ISBN: 9780470684115

Online ISBN: 9781119971528



  • simplifications, under level benefit contracts;
  • variance calculation, and distributional features - simplifying level benefits and constant interest;
  • exact distributions, or deferred insurances - death benefit paid over benefit period;
  • prospective losses, contract paying 1 unit at moment of failure - continuous level premiums;
  • using equivalence principle premiums;
  • failure benefits, year of failure - annuity benefits and premiums, payable yearly;
  • single-premium annuity, and continuous payments - annual rate of 1 prior to failure;
  • non-level benefit examples - exact distributions as term or deferred insurance;
  • deferred insurance;
  • computing exact distribution of L - in annual premium policy


This chapter contains sections titled:

  • Introduction

  • Variance calculations in the continuous case

  • Variance calculations in the discrete case

  • Exact distributions

  • Non-level benefit examples

  • Exercises