Joint Life 8I

[vincetylee]

Hi there,

There appears to be a mistake in the study notes "Life and Annuity Products and Feature"on Single vs Dual Status (Joint life).

In the notes, it is said that the "exact age", "Joint equal age" and "equivalent single age" approach are considered as dual life status approach.

According to my understanding of the notes, it seems to me that the equivalent single age and joint equal age are single life approach, wheras the exact age methods appears to me to be a dual life approach.

Would appreciate it some clarifications. Thank you!

Cheers,


Vince

[nbd]

Removed

[vincetylee]

Thanks! I am really confused by the notes. I was trying to understand the notes again. There appears to be some inconsistency. In 2 separte notes, the referred to Exact age, joint equal age and joint equivalent age as dual status and another as single status.

Would appreciate some clarifications. Thanks!

Cheers,



Vince

[Double High C]

I think:

Single status means FRASIERIZED joint survival design and
it doesn't care about the first death..

Dual status means "Jump in Cash Value" design and
COI, Cash Value, increase after the first person's death.

-M

One correction:

There generally are no jumps in COIs (or premiums, for traditional WL-type) policies after the first death.

Having said that, for a WL policy with OYT (one year term) riders, on a nonfrasierized (i.e. dual status, or more accurately, tri-status) policy, after the first death, the OYT rates will in fact jump (unless it is specified that the OYT riders are themselves frasierized, as one company does, in order to prevent skyrocketing rates).