P1P2 - Actuarial

  • 1873 - Book - Politics and Mysteries of Life Insurance, Elizur Wright - 265p - [GooglePlay-link]
    • (p12) - (SIV - "Self Insurance Value") - Consequently, the insurance done by ...the company is ... 972.34, and the balance, $27.66, is the self-insurance, reserve, or "value of the policy,” at the end of the second year.
      • It would be better, always, to call this the self insurance value of the policy,
  • 1981 - SOA - Universal Life (RSA81V7N412), Society of Actuaries - 16p
  • 2012 - Book - Understanding Actuarial Practice, Stuart A. Klugman - 509p
  • 2018 - Book - Statutory Valuation of Individual Life and Annuity Contracts | 5th Edition -- Claire, Lombardi and Summers
Understanding-Actuarial-Practice-page-186-

 

Bonk

P1

E1

SIV

i

CIV

P2

E2

DB-A

DB-CP

Generic
  • a premium paymenta
  • A premiumb
  • a premiumc
  • that premiume
  • the incomeo2
  • premium is not paids
  •  loadsd
  • a fundf
  • the fundh
  • the fundk
  • the fundm
  • The cash valuen
  • the fund balanceu
  • interestL
  • the incomeo2

 
  • cost of insurance chargesg
  • deduction transactionsq2
  • next month's cost of insurancev
  • Expense chargesj
  • deduction transactionsq2

 
  • lapser
  • lapsest

 

  • Let's review the basic mechanics of Universal Life.
  • The first thing that has to occur is a premium paymentP1.
    • A premiumP1 may be paid at any time and in any amount desired.
  • Whenever a premiumP1 is paid, loadsE1 are deducted from that premiumP1.
    • The balance is added to a fundSIV.
  • On a monthly basis, cost of insurance chargesP2 are deducted from the fundSIV.
  • Expense chargesE2may be deducted from the fundSIV, especially in the early policy years, and interesti is added to the fundSIV on a monthly basis.
  • The cash valueSIV changes each month based on the net impact of the incomeP1andi and deduction transactionsP2andE2.
  • The policy does not lapseDB-CP  if a premiumP1 is not paid; rather, it lapsesDB-CP if the fund balanceSIV becomes too small to pay the next month's cost of insuranceP2. 

--  Ben H. Mitchell, [Bonk: a consulting actuary with Tillinghast in Atlanta - Years-?]

1981 - SOA - Universal Life (RSA81V7N412), Moderator: Samuel H. Turner, Society of Actuaries - 16p 

  • Let's review the basic mechanics of Universal Life.
  • The first thing that has to occur is a premium payment.a
    • A premiumb may be paid at any time and in any amount desired.
  • Whenever a premiumc is paid, loadsd are deducted from that premium.e
    • The balance is added to a fund.f
  • On a monthly basis, cost of insurance chargesg are deducted from the fund.h
  • Expense chargesj may be deducted from the fundk, especially in the early policy years, and interestL is added to the fundm on a monthly basis.
  • The cash valuen changes each month based on the net impact of the incomeo2 and deduction transactions.q2
  • The policy does not lapser  if a premium is not paids; rather, it lapsest if the fund balanceu becomes too small to pay the next month's cost of insurance.v 

--  Ben H. Mitchell, [Bonk: a consulting actuary with Tillinghast in Atlanta - Years-?]

1981 - SOA - Universal Life (RSA81V7N412), Moderator: Samuel H. Turner, Society of Actuaries - 16p 

  • Let's review the basic mechanics of Universal Life.
    • The first thing that has to occur is a premium payment.
      • A premium may be paid at any time and in any amount desired.
    • Whenever a premium is paid, loads are deducted from that premium.
      • The balance is added to a fund.
    • On a monthly basis, cost of insurance charges are deducted from the fund.
    • Expense charges may be deducted from the fund, especially in the early policy years, and interest is added to the fund on a monthly basis.
    • The cash value changes each month based on the net impact of the income and deduction transactions.
    • The policy does not lapse  if a premium is not paid; rather, it lapses if the fund balance becomes too small to pay the next month's cost of insurance. 

--  Ben H. Mitchell, [Bonk: a consulting actuary with Tillinghast in Atlanta - Years-?]

1981 - SOA - Universal Life (RSA81V7N412), Moderator: Samuel H. Turner, Society of Actuaries - 16p