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Reserve Formals quick question
Sorry if this question has been asked already.
Is the following correct: If I use the insurance formula (A_x+t  A_x) / (1  A_x) do i multiply that by the Death Benefit for the reserve. Also, If I use the annuity formula 1  (a_x+t / a_x) do i multiply that by the Premium for the same reserve? Thanks.
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#2




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If you take the basic (prospective) formula for determining a net reserve: Reserve @ time x+t = BA(x+t)  Pa(x+t) *where B is benefit and P is premium and begin substituting for P and either A(x+t) or a(x+t), then you will get to the annuity reserve and insurance reserve formulas. You will see both formulas multiply by the Death Benefit at the end.
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MFE  FAP  APC Last edited by TCUMath; 10022017 at 01:13 PM.. 
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