Chapter 5: Life Annuities

Whole life annuity: ax Recursion relations

J
00

Elan] at! t]Jx + t)dt +

o + nl
00 ,x,)
1 +vpx
Jvt'tPxdt
o
J
o
tEx dt
2
1 + v Px

1l or [an]

n-year temporary annuity:

(Iii)x
n n

J
o
v
t
. tllx dt = J
0 Whole life annuity due: 0,,;
1l oriY] 00

E[ii K+lll L 11k. kPx

'..=0
n-year deferred annuity:
Yor[oK+lll
J JtE~,dt
rAJ OC.

1,t . tPx dt
n n
n-yr temporary annuity due:

'11-1
2
Vor[Y] aX!n) E[Y] = Lv k
. k]lx
k=O

n-yr certain and life annuity:

n-yr deferred annuity due:

+ na,x +
ex)

E[Y] = L . kP"
Most important identity k=n

1 ba'T + )Ix

1 )Ix

1 ba'x:111
n-yr certain and life due: ii'x:111
1 - (2b)

d
1 Ax:111 0111 +L v
k
. kllx
d k=n
1 (lii J ;:111 + +n,O'T

Exam f,/l - Life COlltingencieh 5