I am having trouble grasping (at a high-level) the minimum required/statutory reserves for a Type B UL policy (death benefit = AV + Face amount).
I'm in Pension so I don't have practical experience with this. I've researched this thoroughly and just get more confused (terms such as basic reserves, net premiums, net single premiums, etc). I even read through the actuarial guideline on it and the calculation for reserve seems EXTREMELY complex. I just need to understand this at a high-level for a module assignment.
Now the account value piece of the benefit is of course funded with the account value itself, but is there an additional reserve required for the guaranteed face amount benefit? Or is the ending reserve the max (account value, some calculated reserve).
Thanks in advance for the help.
I'm in Pension so I don't have practical experience with this. I've researched this thoroughly and just get more confused (terms such as basic reserves, net premiums, net single premiums, etc). I even read through the actuarial guideline on it and the calculation for reserve seems EXTREMELY complex. I just need to understand this at a high-level for a module assignment.
Now the account value piece of the benefit is of course funded with the account value itself, but is there an additional reserve required for the guaranteed face amount benefit? Or is the ending reserve the max (account value, some calculated reserve).
Thanks in advance for the help.
Reserves for UL Type B