- #1
k.udhay
- 161
- 10
- TL;DR Summary
- Find out the equation of sequencing numbers; Annuity calculation
Below is a screenshot of an insurance policy:
I was told by the insurance company that the return becomes lower and lower with the age till death increasing. And this reduction in return is by an annuity ratio of 6%.
I wanted to find out the formula so that I can understand the effect of different annuity ratio, higher max. return value, compare with other policies etc. But no matter how hard I try, I couldn't succeed. Although I get quite some materials in youtube and google for annuity ratio, nothing gives me a straight forward equation for a similar example.
Below are the boundary conditions:
Tenure of insuance coverage is known, Maximum possible return which is at the first insurance of coverage is known and annuity percentage is known.
Can someone in this group help me to find the equation pl.?
I was told by the insurance company that the return becomes lower and lower with the age till death increasing. And this reduction in return is by an annuity ratio of 6%.
I wanted to find out the formula so that I can understand the effect of different annuity ratio, higher max. return value, compare with other policies etc. But no matter how hard I try, I couldn't succeed. Although I get quite some materials in youtube and google for annuity ratio, nothing gives me a straight forward equation for a similar example.
Below are the boundary conditions:
Tenure of insuance coverage is known, Maximum possible return which is at the first insurance of coverage is known and annuity percentage is known.
Can someone in this group help me to find the equation pl.?