Actuarial Outpost
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Life
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

Thread Tools Search this Thread Display Modes
Old 05-04-2018, 05:34 AM
wangxy wangxy is offline
Join Date: Oct 2010
Posts: 20
Lightbulb How do you price when there is a Change of Insured option?

Hi Guys,

In Hong Kong, certain saving products (we call it 105/101 product, where death protection is 105/101% of total premium paid) offer this option called "Change of Insured". Basically, the policy owner can apply to change the insured until the "first" insured reaches age 120+ regardless if the first insured is alive or not. They are promoting this option to people who are willing to pass wealth to next few generations.

Since the death benefit is very small, Guaranteed Cash Value plus bonus would become larger very soon then it becomes a pure saving account. However to "accurately" calculate profits, I am still interested to know how cashflows should be projected since most mortality tables stop at around age 100 or so. Should you just assume mortality only when there is a risk exposure and zero them out afterwards? I would love to hear some inputs.

Many thanks in advance.
Reply With Quote
Old 05-04-2018, 09:01 AM
JMO's Avatar
JMO JMO is offline
Carol Marler
Join Date: Sep 2001
Location: Back home again in Indiana
Studying for Nothing actuarial.
Posts: 37,660

You can find lots more by putting "high age mortality" (without quote marks) into Google.
Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.

My latest favorite quotes, updated Nov. 20, 2018.

I should keep these four permanently.
Originally Posted by rekrap View Post
JMO is right
Originally Posted by campbell View Post
I agree with JMO.
Originally Posted by Westley View Post
And def agree w/ JMO.
Originally Posted by MG View Post
This. And everything else JMO wrote.
And this all purpose permanent quote:
Originally Posted by Dr T Non-Fan View Post
Yup, it is always someone else's fault.
All purpose response for careers forum:
Originally Posted by DoctorNo View Post
Depends upon the employer and the situation.
Originally Posted by El Actuario View Post
Therapists should ask the right questions, not give the right answers.
Originally Posted by Sredni Vashtar View Post
I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

All times are GMT -4. The time now is 05:47 AM.

Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.11367 seconds with 9 queries