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#1




Disabled Life Reserves
hi,
can anyone tell me the formula how to compute disabled life reserves? i saw a thread related to it, but i guess the one who posted it is one step ahead of me. i have zero knowledge on this so it would be helpful if someone would teach me how to work this out. i'm actually trying to replicate the reserve computation (per seriatim) generated from our actuarial software. i am given the following policy information:  issue age  disability date  issue date (same as disability date)  monthly benefit  benefit start date  benefit termination date i can also view the disability tables and interest rates used in reserving. however, i cannot figure out how they computed the reserve amount as of the valuation date. can someone help me out, pretty please??? many, many thanks!!! 
#2




Are you referring to a rider to a life product or what exactly?
I'm new so I don't know how to use mathematical notation... A DLR is essentially an annuity. You want the actuarial PV of payments while the claimaint is disabled. From: Disabilty Date + Elimination Period To: Benefit Termination Date What: Sum ( Benefit*Survival*Interest Discount) Where: Survival = tpx = the probability of not terminating before payment Interest Discount = (1/(1+i)^t t = months between cash flow and valuation date Last edited by MNiemerg; 02202012 at 10:22 AM.. 
#4




i've searched the help topics already. unfortunately, it doesn't provide any details about the calculation.

#5




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#7




You didn't say which vendor, but they may have a computations manual that doesn't link up to the help menus. If the help topics don't give the detail you need, I would contact the vendor and see if other documentation exists that you aren't aware of.

#8




we're using AXIS to compute the reserves.

#9




There may be some differences based on what type of assumptions they make in the calculation (e.g. are payments distributed at beginning, or middle of month?) My experience with another vendor was that the assumptions didn't always make sense, and their figures were damn near impossible to replicate without additional assistance.
So my suggestion would still be to contact AXIS and ask for some guidance if you get the basic calculation down and find that it doesn't match. 
#10




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disabled life reserves, dlr 
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