Classical net premium calculation Oftener premium payment I

Classical net premium calculation Oftener premium payment I. In the practice there a common practice, if the client would like to pay premium oftener than a year. We assume in the following chapter that the client pays premium k times per a year. In this case there are two reasons why insurer can settle more premium than the yearly premium: 1. the premium will be paid later than in yearly case; 2. In case of death one part of the last yearly premium will not come in (the part which is laid on after death). At first we will investigate how much could be the allowance because of the first reason. We assume that the death cases are linear in each year, and there will be linear interest rate in one year. Life insurance mathematics V. lecture

Classical net premium calculation Oftener premium payment II. Life insurance mathematics V. lecture

Classical net premium calculation Oftener premium payment III. It means that δ depends on the payment frequency and the technical interest rate. Important remark is that in this case we were concerned with the earned premium not the date when the premium was paid in the concrete, which is an other issue. Life insurance mathematics V. lecture

Classical net premium calculation Oftener premium payment IV. Life insurance mathematics V. lecture

Classical net premium calculation Oftener premium payment V. Life insurance mathematics V. lecture

Classical net premium calculation Oftener premium payment VI. Life insurance mathematics V. lecture