Temporary Life Annuity Premium
A temporary life annuity is an annuity that makes regular payments to a person (the annuitant) for a specified number of years.
An ordinary temporary life annuity is an annuity that makes payments at the end of each interval.
A temporary life annuity due is an annuity that makes payments at the end of each interval.
A deferred temporary life annuity is an annuity in which payments start after a certain amount of time.
The Temporary Life Annuity Premium calculation calculates the net single premium for a given temporary series of annual, semiannual, quarterly or monthly payments.
Input
| • life table | |
| • current age (x) | |
| • payments start at age | |
| (x for an annuity due) | |
| (x + 1 for an ordinary annuity) | |
| (x + 2, 3, ... for a deferred annuity) | |
| • annual, semiannual, quarterly or monthly payments | |
| • nominal annual rate | |
| • duration in years | |
Note: FinKit always calculates for payments that start at the exact age specified.
Results
| • net single premium |
| • temporary life annuity factor |
Example
| • | What is the net single premium for an ordinary 5-year temporary annuity of $1,200 per year starting at age 31 for a male, now aged 30, if interest is at 4 %?
Answer: $5,319.34. |
Related topics