Secondary Guarantees â UL & VUL Products - Actuary.com
Secondary Guarantees â UL & VUL Products - Actuary.com
Secondary Guarantees â UL & VUL Products - Actuary.com
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<strong>Secondary</strong> Guarantee Rider Profit Results<br />
• Initial Stochastic Model<br />
– Generated 100 scenarios.<br />
• No investment restriction placed on policyowner<br />
– Assumed 100% Investment in S&P 500<br />
• High potential return / High volatility<br />
• Reported results:<br />
– 31% of all cells go “in the money”<br />
– PV of Profits Statistics<br />
• Mean: $ 3.4M<br />
• Std. Dev. :$ 700k<br />
• Mean difference vs. baseline: $500k<br />
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