Actuarial Equivalent

Actuarial Equivalent,

Actuarial Equivalent Definition:

  • Balanced references to the fact that cash payments are valued if paid in the future as insurance benefits. This is done to determine the amount of premium the recipient will receive. This is a way to compare the benefits of the two guidelines.

  • A simple definition of Actuarial Equivalent is: If the current values ​​of the two series of payments are equal according to the table provided, then the two series are considered practically equal in this respect, taking into account a certain interest rate and mortality rate. For example, a monthly lifetime allowance of. 67.60 after the age of 60 (based on a specific set of accrual assumptions) is equivalent to 100 100 a month after the age of 65. The actual values ​​of benefits are different, but the current value of both benefits is the same considering death and interest.

  • Therefore, based on some default assumptions, time for two insurance policies. Periodic payments are equivalent to the same current cost and are usually used to compare policies or plans.

Literal Meanings of Actuarial Equivalent

Actuarial:

Meanings of Actuarial:
  1. They are involved in compiling and checking statistics to calculate insurance risks and premiums.

Sentences of Actuarial
  1. Actual advisor

Equivalent:

Meanings of Equivalent:
  1. Quantity, quantity, functions, importance, etc. of a person or value.

  2. Equal in value, quantity, functions, meaning, etc.

Sentences of Equivalent
  1. French equivalent of the FBI

  2. One unit is equal to a glass of wine

Synonyms of Equivalent

identical, analogue, counterpart, double, alternative, twin, complement, opposite number, parallel, equal, match