Oak Mountain Software
AnnuityValue
Example:
Joint & Contingent Annuity
An individual, age 57, and beneficiary age 60, wish to
receive $1,500 monthly as a 75% Joint & Contingent annuity with 10 Year
Certain.
How many dollars are needed today (present value) to pay for
this benefit? Assume 5.0% and GAR 1994
mortality.
Individual Age
Display
|
|
Primary Assumptions |
||||
|
Table: |
58 |
Description: |
1994 GAR UNISEX MORTALITY |
Deferred Age: |
65 / 0 |
|
Interest: |
5.00% |
Setback(-)/Setforward(+): |
0 |
qx Factor: |
1 |
|
Pay Freq: |
Monthly |
Years Certain: |
10 |
Annuity Certain: |
7.929306 |
|
|
|||||
|
|
Secondary Assumptions |
||||
|
Table: |
58 |
Description: |
1994 GAR UNISEX MORTALITY |
Deferred Age: |
65 / 0 |
|
Interest: |
5.00% |
Setback(-)/Setforward(+): |
0 |
qy Factor: |
1 |
|
Pay Freq: |
Monthly |
Years Certain: |
10 |
Annuity Certain: |
7.929306 |
|
Joint Age Values |
|
|
Annuity Factor |
Description |
|
12.247628 |
Immediate Joint Life with 10 Year Certain |
|
15.264204 |
Immediate 75% Joint & Contingent with 10 Year
Certain |
|
14.756316 |
Immediate 75% Joint & Survivor with 10 Year
Certain |
|
18.673779 |
Joint Curtate Expectation of Life |
Answer:
|
Period Payment |
$1,500.00 |
|
|
Frequency of Payment |
12 |
|
|
Annuity Factor |
15.264204 |
|
|
Product |
$274,755.67 |
|
|
Description |
Annuity of $1,500 payable every month as long as the
participant is alive. If the participant dies prior to the completion of the 10
year period, $1,500 monthly is payable to the beneficiary for the remainder
of the 10 year period and then reduces to $1,125 monthly for the remainder of
their life. If the participant dies after the 10 year period has
elapsed, $1,125 monthly is payable to the beneficiary for the remainder of
their life. |
|