MCPCalc

Actuarial Reserve Calculator

Estimate net premium reserves with the prospective method for whole life, term, and endowment policies.

Scratchpad (not saved)

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What This Calculator Does

Estimate net premium reserves with the prospective method for whole life, term, and endowment policies.

It combines Policy Type, Issue Age, Current Duration (Years), Policy Term (Years) to estimate Prospective Reserve (tVx), Reserve Factor, Annual Net Level Premium.

Formula & Method

Core equations: The prospective reserve is ^tV_x = EPV_t(\text{future benefits}) - EPV_t(\text{future net premiums}). Net level premium is P = \frac{EPV_0(\text{benefits})}{\ddot{a}_{x:\overline{n}|}} for n-pay structures (whole life uses lifetime premium annuity).

Notation used in the formulas: R = Prospective Reserve (tVx); x_{1} = Policy Type; x_{2} = Issue Age; x_{3} = Current Duration (Years); x_{4} = Policy Term (Years); x_{5} = Face Amount; x_{6} = Interest Rate.

Method summary: inputs are normalized to consistent units, core equations are evaluated, then secondary values are derived and rounded for display.

Use this calculator for quick scenario analysis. Start with baseline values, change one driver at a time, and compare how sensitive the results are to each input shown above.

Inputs Used

  • Policy Type: Used directly in the calculation.
  • Issue Age: Used directly in the calculation.
  • Current Duration (Years): Used directly in the calculation.
  • Policy Term (Years): Used directly in the calculation.
  • Face Amount: Used directly in the calculation.
  • Interest Rate: Used directly in the calculation.
  • Sex: Used directly in the calculation.
  • Mortality Table: Used directly in the calculation.

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