Lecture 1 Life Insurance

Dr. Amr Galal

Group C , D

* Benefit: ) (

Paid by the insurer to the insured.

Paid in three cases 3
IN Case

* Benefit is disbursed in two different ways

a) Insurance Sum or amount ( S).
b) Annually ( R) Repetition .

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Saturday, February 14, 2015

Lecture 1 Life Insurance

Dr. Amr Galal

Group C , D

* Premium :

Paid by the insured to the insurer.

* Summary :

* Premium related to the benefit

Premium
Paid in the beginning of the insurance period.

Probabilities

2Page

Saturday, February 14, 2015

Lecture 1 Life Insurance

Dr. Amr Galal

Group C , D

Life Table Frame

5 Columns with 5 elements

X
Age
30
31
* Contents :

Lx

1000
900

Dx

100

1) X (age).
2) Lx (No. of survivors at a certain age) ()

Lx = L30 = 1000
3) Dx (No. of Deaths)
No. of Deaths between the age X, X+1 1+
No. of Deaths during one year

No. of Deaths before reaching the age X+1 1+

X = 30
X=31
L30 = 1000
L31 = 900
D30 = Lx Lx+1 = L30 L31 = 1000 900 = 100
Dx = Lx Lx+1
100 = 1000 - 900

Lx = Dx + Lx+1
1000 = 100 + 900

Lx+1 = Lx - Dx
900 = 1000 - 100

4) , 5) The Probability that a person aged (X).

Will live to the age X+1 1+
[Px] Px =

0.9 =
Will die between age X,X+1 1+
qx =

0.1 =
* Dx = Lx Lx+1
3Page

Saturday, February 14, 2015

Lecture 1 Life Insurance

Dr. Amr Galal

Group C , D

Summary
=

Lx+1 = Px Lx

Dx = qx Lx

Lx =

Lx =

) ( 1 =
Px + qx = 1 (same age )
Px = 1 qx
qx = 1 Px

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Saturday, February 14, 2015