Pure Endowment Payment
A pure endowment is the discounted value of an amount payable to a person at a future date if that person is still alive when the payment is due. It is calculated by multiplying the discounted value of the payment by the probability that the person will survive to the future date.
Note: for the sake of consistency with other calculations, the discounted value is referred to as the net single premium ("net", since present and/or future expenses are ingnored).
The Pure Endowment Payment calculation calculates the expected future payment for a given premium.
Input
| • life table | |
| • current age | |
| • payment at age | |
| • net single premium | |
| • nominal annual rate |
Results
| • future payment |
| • pure endowment factor |
Example
| • | For a net premium of $10,000 and an interest rate of 4 % , what is the expected future payment payable to a male, now aged 30, if he survives to age 60?
Answer: $37,209.95. |
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