CISC 121 Lecture Notes - Lecture 3: Survival Analysis, Life Annuity, Life Insurance

• School: Queen's University
• Department: Computing
• Course: CISC 121
• Professor: Wendy L Powley

Document Summary

Section 6. 5 insurance and annuities for multiple lives. For insurance on joint life (first to die) statuses pay upon the death of the first member of the group and joint life annuities cease payment upon the first death. In the last survivor (last to die) case, the opposite is true: insurance pays after the last member dies and annuity payments continue as long as at least one member is alive. The following are examples of equations you"re already familiar with, except with the single life (x) replaced with the multiple life status u: A u = k = 0 max k vk+1pr( k=k) var[z] = 2a u (a u)2 n-1 vk( U:n = (1 a u:n )/d = k = 0. Axy + a xy = a x +a y and xy + xy = x + y k pu ) Note that these equalities hold for all types of life insurance and life annuities, not just discrete whole life.