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ValueOfAnnuity

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Returns the approximate value of an annuity payable to a person of a given age, with possible contingent spouse’s annuity payable on death of main life. Function caters for guarantee periods and for various different mortality tables and table variants but uses approximations to cater for, e.g. different payment frequencies.

 

A specific input parameter defines choice of annualisation convention for the input interest rate. If interest rates are annualised then the appropriate input value for AnnualisationConvention is 1. If interest rates are continuously compounded then the appropriate input value for AnnualisationConvention is 0 etc. The function MnRestateYieldOrDiscount may be used to convert between different annualisation conventions.

 

PaymentTimingDescription needs to be one of “arrears”, “advance” or “continuous”. If it is “arrears” or “advance” then payments occur at the end or the beginning of periods of length 1/PaymentFrequency (in years). If it is “continuous” then payments are assumed to occur continuously (and PaymentFrequency needs to be zero).

 

Currently the Nematrian website supports a range of UK mortality tables using nomenclature derived from terminology adopted by the UK’s Continuous Mortality Investigation Bureau. Please speak to your usual Nematrian contact if you would like this function to calculate annuities using mortality tables and improvement factors that are not yet supported by the Nematrian website.

 

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-          Interactively run function

-          Interactive instructions

-          Example calculation

-          Output type / Parameter details

-          Illustrative spreadsheet

-          Other Life insurance functions

-          Computation units used

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