Continuous Whole Life Present Value Second Moment Calculator

Calculate the second moment of a continuous whole-life insurance present value under constant forces of mortality and interest.

Description

Calculate the second moment of a continuous whole-life insurance present value under constant forces of mortality and interest.

Continuous Whole Life Present Value Second Moment Calculator provides a focused, reproducible calculation with explicit inputs and a deterministic result. Calculate the second moment of a continuous whole-life insurance present value under constant forces of mortality and interest.

Use to calculate the second moment of a continuous whole-life present-value random variable under constant forces.

When to use Continuous Whole Life Present Value Second Moment Calculator

Use to calculate the second moment of a continuous whole-life present-value random variable under constant forces.1

How the calculation works

Calculate the second moment of a continuous whole-life insurance present value under constant forces of mortality and interest.

E[Z²] = B² μ / (μ + 2δ) 1

Inputs and interpretation

Keep every input on the same valuation, timing, unit, and assumption basis. Interpret the output at the precision supported by those inputs rather than treating extra decimal places as additional certainty.

Assumptions and limitations

The tool models payment at the moment of death; variance requires subtracting the square of the separately calculated first moment.

References

  1. Supplementary Notes for Actuarial Mathematics for Life Contingent Risks — Society of Actuaries

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