Cost of insurance for Type B universal life

Computes the one-period cost of insurance for a Type B universal life policy using Equation (16.5a): $$ COI_t = \frac{B q_{x+t-1}}{1+i^q}. $$

Usage

coi_ul_typeB(B, qx, iq)

Arguments

B

Face amount.

qx

Mortality rate for the period.

iq

Interest rate used in the cost-of-insurance calculation.

Value

Numeric vector.

Examples

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