Term Insurance EPV Calculator

Calculate the expected present value of an n-year term life insurance paying at the end of the year of death within the term.

Description

Calculate the expected present value of an n-year term life insurance paying at the end of the year of death within the term.

Term Insurance EPV Calculator provides a focused, reproducible calculation with explicit inputs and a deterministic result. Calculate the expected present value of an n-year term life insurance paying at the end of the year of death within the term.

Use to value a level death benefit payable at the end of the year of death within a finite term.

When to use Term Insurance EPV Calculator

Use to value a level death benefit payable at the end of the year of death within a finite term.1

How the calculation works

Calculate the expected present value of an n-year term life insurance paying at the end of the year of death within the term.

EPV = Bvq[1−(vp)^n]/[1−vp] 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

Constant annual mortality and interest are simplified and expenses, lapses, underwriting, and immediate death payment are omitted.

References

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

Don't forget to set a bookmark for tool.io!
Privacy | Imprint | Cookies