Build in a margin for error

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Reference no: EM133019910

To build in a margin for error, actuaries will use mortality rates that are higher than expected. How would you build in this conservatism into lapse rates?

With a life annuity, the insurer will pay the annuitant a level amount each year for as long as the annuitant lives. What mortality risk does an actuary need to consider when designing an annuity? What would a "conservative" assumption be?

Why might different companies have different mortality experience tables?

Reference no: EM133019910

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