Premiums

Principle of equivelance
EPVinflows EPVoutflows
EPVpremiums EPUBenefits EPVexpenses

EPV of Profit
Po EPVpremiums EPUBenefits EPVexpenses

Risk premium
G annual premiums
S benefit amount
Ax ECP
Gox SAX ELP G ax
of G doc p S Axt EEP if benefit payable atend
of
year of death
Expenses

Iiiimination
e renewal

ELP Gase SAX I ease fax

E Po Gase S Ax I ease fax
e from 2nd e lax 1
year

Profit loading
ECP SO
often of G EPVprofits I Gax
Gox SAX It eat FAxt tax

Premiums always in advance

otherwise policyholder free cover
enjoys
 Loss function
Gain Sax I tease fax t t t profit margin
t Svt Ga Often
E Loss SA's Gaia Often

If mistake leg Aso instead of Acsa or sass insteadof

x 60 Make note that know insteadof re

you doing
00 Poison V'san guaranteed annuity

Pricing basis assumptions to calc premium

Valuation basis assumption to calc value of contract reserve