4. Life Annuities

  1. S. David Promislow

Published Online: 13 JAN 2011

DOI: 10.1002/9781119971528.ch4

Fundamentals of Actuarial Mathematics, Second Edition

Fundamentals of Actuarial Mathematics, Second Edition

How to Cite

Promislow, S. D. (2010) Life Annuities, in Fundamentals of Actuarial Mathematics, Second Edition, John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9781119971528.ch4

Author Information

  1. York University, Toronto, Canada

Publication History

  1. Published Online: 13 JAN 2011
  2. Published Print: 17 DEC 2010

ISBN Information

Print ISBN: 9780470684115

Online ISBN: 9781119971528

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Keywords:

  • life annuities, and type of risks - of living too long;
  • life annuities, insuring against risk - contract, between insurance company, insurer and annuitant;
  • insurance companies, not the only source - pension plans, paying retirement benefits, as life annuity;
  • annuity premium calculation - mathematical aspects of annuities;
  • deferred annuities, contracts - where initial payment, not made for many years;
  • interest and survivorship discount function - net single premiums or present values;
  • life annuity symbols - written as given with age as a subscript;
  • interest and survivorship accumulation - concept of a tontine;
  • guaranteed payments, individuals purchasing life annuity - dying immediately after paying premiums;
  • spreadsheet calculations - handling problems involving a life table

Summary

This chapter contains sections titled:

  • Introduction

  • Calculating annuity premiums

  • The interest and survivorship discount function

  • Guaranteed payments

  • Deferred annuities with annual premiums

  • Some practical considerations

  • Standard notation and terminology

  • Spreadsheet calculations

  • Exercises