Description
Life Insurance Premium and Reserves Valuation.
Description
Methods for valuation of life insurance premiums and reserves (including variable-benefit and fractional coverage) based on "Actuarial Mathematics" by Bowers, H.U. Gerber, J.C. Hickman, D.A. Jones and C.J. Nesbitt (1997, ISBN: 978-0938959465), "Actuarial Mathematics for Life Contingent Risks" by Dickson, David C. M., Hardy, Mary R. and Waters, Howard R (2009) <doi:10.1017/CBO9780511800146> and "Life Contingencies" by Jordan, C. W (1952) <doi:10.1017/S002026810005410X>. It also contains functions for equivalent interest and discount rate calculation, present and future values of annuities, and loan amortization schedule.
README.md
DetLifeInsurance
DetLifeInsurance is an R package designed to provide tools for:
- Deterministic valuation of actuarial reserves and life insurance and annuities premiums (both constant and variable amounts supported).
- Applying fractional age assumptions to life tables, and generating new ones based on mortality laws.
- Calculation of equivalent interest-discount rates as well as future and present value of annuities.
- Calculation of loan amortization schedule.
In addition, 47 commonly used mortality tables are included as data.
Installation
To install from CRAN, use:
install.packages("DetLifeInsurance")
To install from GitHub, use:
#library(devtools)
devtools::install_github("JoaquinAuza/DetLifeInsurance")
Note: package devtools
must be installed.
Example #1
In this example, we obtain the annual net premium of a life insurance coverage of $100000 for a term of 5 years, issued to a male of age 30, using an interest rate of 3.5%.
#library(DetLifeInsurance)
LI <- A.(x=30, h=0, n=5, i = 0.035, data=CSO80MANB, cap = 100000) #Actuarial PV of the LI
Prem <- a(x=30, h=0, n=5, k=1, i=0.035, data=CSO80MANB , assumption="UDD")
Net_Premium <- LI/Prem #Net premium to be paid at the begining of each year
#The same result can be achieved by using PremiumFrac()
Net_Premium <-PremiumFrac(px1=LI, x=30,m=5,i=0.035,k=1,data=CSO80MANB)
Example #2
In this example, we obtain the value of the actuarial reserve for a life insurance coverage where the insuree pays monthly premiums during the first year. UDD assumption is used.
#library(DetLifeInsurance)
LI <- A.(x=30, h=0, n=5, i = 0.035, data=CSO80MANB, cap = 100000)
Net_Premium <- PremiumFrac(px1=LI,x=30,m=1,k=12,i=0.035,data= CSO80MANB,assumption = "UDD")
Net_Premium_monthly <- Net_Premium/12
V_A.(px=Net_Premium_monthly, x=30, h=0, n=5, k = 1, cantprem = 12,
premperyear = 12, i = 0.035, data=CSO80MANB, assumption = "UDD",
cap=100000, t=60)
Status
Work in progress!
- [x] Basic functionality.
- [x] Enhanced documentation.
- [x] Fix references, fix non-exporable functions.
- [x] Upload to CRAN.
- [x] New functions: group insurance, loan insurance reserves...
- [ ] what else?