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Published online by Cambridge University Press: 18 August 2016
The subject of this Paper is Whole Life Non-Profit Assurances with uniform Premiums payable throughout life.
In choosing this subject for investigation, I have been influenced mainly by the following reasons :
(1) This type of policy represents life assurance in one of its simplest and earliest forms. The premium and the sum assured are both fixed throughout life, save for the very slight chance of insolvency of the office causing the contract to be reduced. Also nowadays it is not uncommon to find that the surrender values and equivalent paid-up policies are guaranteed from the outset.
(2) Other tables such as Whole Life by Limited Premiums, Half Premiums for first “n” years, &c., are as a rule founded on the basis of the simple whole life ordinary rates.
(3) A considerable body of data derived directly from the experience of British Offices under ordinary whole life non-profit policies is available as a result of the British Offices Mortality Investigation, 1863-93.
(4) In spite of the apparent simplicity of the contract, there are marked divergencies in the rates of premium charged by first-class offices and in the surrender values and equivalent paid-up policies offered by them.
page 50 note * Throughout this paper π is used for the net, and P for the office, premium.
page 52 note * J.I.A., vol. xlii, p. 309.
page 62 note * Mr. G. W. Richmond, T.F.A. vi, p. 117.
page 78 note * Some modification of the percentage would be advisable at very old ages. The select data in the B.O. Experience do not go beyond age 75, and I would suggest that, for each year of age attained after 75, the percentage of 95 be increased by 1 up to a limit of 100 for age attained 80 onwards. On this basis the formula for age attained 80 and upwards would be nVx —·02
page 79 note * See reply to Discussion.
Please note have been issued for this article.
