Cost of insurance for Type B universal life

Computes the one-period cost of insurance for a Type B universal life contract: $$ \mathrm{COI}_t = \frac{B_t q_{x+t-1}}{1+i_t^q}. $$

Usage

coi_ul_typeB(B, qx, iq)

Arguments

B

Face amount.

qx

Mortality probability for the period.

iq

Interest rate used in the cost-of-insurance calculation. Values must be greater than -1.

Value

A numeric vector of cost-of-insurance charges.

Details

The arguments may be scalars or vectors. Scalar arguments are recycled to the common length.

Examples

coi_ul_typeB(B = 100000, qx = 0.00076, iq = 0.03)
#> [1] 73.78641
coi_ul_typeB(
  B = 100000,
  qx = c(0.00076, 0.00081),
  iq = c(0.03, 0.035)
)
#> [1] 73.78641 78.26087