Oak Mountain Software
AnnuityValue
Example:
Joint & Survivor Annuity
An individual, age 62, and beneficiary age 60, wish to
receive $2,000 monthly as a 50% Joint & Survivor annuity with 10 Year
Certain.
How many dollars are needed today (present value) to pay for
this benefit? Assume 5.5% and GAR 1994
mortality.
Individual
Age Display
|
|
Primary Assumptions |
||||
|
Table: |
58 |
Description: |
1994 GAR UNISEX MORTALITY |
Deferred Age: |
65 / 0 |
|
Interest: |
5.50% |
Setback(-)/Setforward(+): |
0 |
qx Factor: |
1 |
|
Pay Freq: |
Monthly |
Years Certain: |
10 |
Annuity Certain: |
7.760348 |
|
|
|||||
|
|
Secondary Assumptions |
||||
|
Table: |
58 |
Description: |
1994 GAR UNISEX MORTALITY |
Deferred Age: |
65 / 0 |
|
Interest: |
5.50% |
Setback(-)/Setforward(+): |
0 |
qy Factor: |
1 |
|
Pay Freq: |
Monthly |
Years Certain: |
10 |
Annuity Certain: |
7.760348 |
|
Joint Age Values |
|
|
Annuity Factor |
Description |
|
11.191075 |
Immediate Joint Life with 10 Year Certain |
|
13.374308 |
Immediate 50% Joint & Contingent with 10 Year
Certain |
|
12.720180 |
Immediate 50% Joint & Survivor with 10 Year
Certain |
|
16.733687 |
Joint Curtate Expectation of Life |
Answer:
|
Period Payment |
$2,000.00 |
|
|
Frequency of Payment |
12 |
|
|
Annuity Factor |
12.720180 |
|
|
Product |
$305,284.32 |
|
|
Description |
Annuity of $2,000 payable every month as long as both
the participant and beneficiary are alive. If the death of either recipient occurs prior to
the completion of the 10 year period, $2,000 monthly is payable to the
survivor for the remainder of the 10 year period and then reduces to $1,000
monthly for the remainder of their life. If the death of either recipient dies after the 10
year period has elapsed, $1,000 monthly is payable to the survivor for the
remainder of their life. |
|