Zillmer Reserve Calculator
Calculate the Zillmer reserve, which raises the valuation premium to recover a per-unit first-year expense allowance and values the policy prospectively with that modified premium.
Description
Calculate the Zillmer reserve, which raises the valuation premium to recover a per-unit first-year expense allowance and values the policy prospectively with that modified premium.
Zillmer Reserve Calculator provides a focused, reproducible calculation with explicit inputs and a deterministic result. Calculate the Zillmer reserve, which raises the valuation premium to recover a per-unit first-year expense allowance and values the policy prospectively with that modified premium.
Use to illustrate a Zillmer-style modified net reserve that spreads a per-benefit-unit initial expense allowance through valuation premiums.
When to use Zillmer Reserve Calculator
Use to illustrate a Zillmer-style modified net reserve that spreads a per-benefit-unit initial expense allowance through valuation premiums.1
How the calculation works
Calculate the Zillmer reserve, which raises the valuation premium to recover a per-unit first-year expense allowance and values the policy prospectively with that modified premium.2
Modified premium = net premium + allowance / issue annuity value 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.
Limitations and assumptions
Actual Zillmer methods and reserve floors are jurisdiction- and product-specific; this stationary model is educational, not statutory valuation.
References
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Supplementary Notes for Actuarial Mathematics for Life Contingent Risks — Society of Actuaries
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Loss reserving — Wikipedia contributors
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