Understanding the basic principles of life insurance products is essential for your personal financial planning, ranging from taking out a mortgage to designing your retirement plan and seeking financial protection for the risk of dying early. In this course, you'll study the time value of money and you’ll work with human mortality data to derive demographic markers (such as the life expectancy). Combining the basics of cash flow valuation with the calculation of survival and death probabilities in R will allow you to construct insightful tools to design life insurance products. You'll come out of this course understanding the valuation of life contingent claims: life annuities, which provide an income upon survival, and life insurance products, which pay a benefit upon death of the policyholder.
Valuation of Cash FlowsFree
Learn the basics of cash flow vectors and their valuation with discount factors. You will then evaluate investments based on their net present value and build your own mortgage calculator. Finally, you will learn about fixed and variable interest rates; and annual and monthly rates.Cash flows and discounting50 xpPresent value of a cash flow100 xpNet present value of investments100 xpValuation50 xpAnywhere, anytime?100 xpActuarial equivalence50 xpSaving for university100 xpDeposits of the saving plan100 xpChange of period and term structure50 xpThe interest rates they are a-changin'100 xpFrom yearly to monthly interest rate100 xpMonthly mortgage loan payments100 xp
Life tables play a vital role in life insurance products. In this chapter you will work with data sets from the Human Mortality Database by building meaningful visualizations to study the evolution of mortality data over age and time. You will also use survival and death probabilities.Random future lifetime50 xpLike it's 1999!100 xpVisualizing one year of mortality data100 xpMen versus women50 xpBinomial experiments50 xpHow likely is Cynthia to live to 100?100 xpThe number of deaths100 xpCalculating probabilities50 xpMultiplication rules!100 xpDeferred mortality probabilities100 xpCalculating life expectancies50 xpCurtate vs complete life expectancy100 xpPlotting life expectancies by age100 xpDynamics50 xpMortality rates over time100 xpCohort survival probabilities100 xp
You will now act as an actuary working in a life insurance company. Learn about the basics of life annuity products and their valuation by working on cases ranging from simple life annuities to retirement plans.The basics50 xpTo survive or not to survive100 xpShort- and long-term100 xpThe whole, temporary and deferred life annuity50 xpAges, interest rates and the whole life annuity50 xpA function to price a life annuity100 xpImmediate vs due100 xpTemporary vs lifelong100 xpGuaranteed payments50 xpPension calculations ignoring mortality100 xpPension calculations accounting for mortality100 xpOn premium payments and retirement plans50 xpA retirement plan for Miss Cathleen100 xpFrom single to annual premium100 xpA good deal? Outliving your life expectancy100 xp
You will now deal with life insurance contracts. Learn how these products are relevant in your financial planning by designing whole life, temporary and endowment insurances.The basics50 xpLucy and Kevin’s mortgage protection50 xpTake it easy: a simple life insurance100 xpThe whole, temporary and deferred life insurance50 xpLife annuity vs life insurance50 xpWhole life insurance100 xpTemporary life insurance100 xpDeferred life insurance100 xpCombined benefits50 xpA life insurance plan for Miss Cathleen100 xpBest of both worlds – the endowment insurance100 xpWrap-up50 xp