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Actuarial Notation Cheat Sheet

International actuarial notation for life contingencies, annuities, and premiums.

Life Table Notation

  • lxl_x: Number of lives at age xx in the life table
  • dxd_x: Number of deaths between ages xx and x+1x+1; dx=lx−lx+1d_x = l_x - l_{x+1}
  • qxq_x: Probability of death within one year for a life aged xx; qx=dx/lxq_x = d_x / l_x
  • pxp_x: Probability of surviving one year; px=1−qx=lx+1/lxp_x = 1 - q_x = l_{x+1} / l_x
  • tpx{}_{t}p_x: Probability of surviving tt years; tpx=lx+t/lx{}_{t}p_x = l_{x+t} / l_x
  • tqx{}_{t}q_x: Probability of dying within tt years; tqx=1−tpx{}_{t}q_x = 1 - {}_{t}p_x
  • t∣uqx{}_{t|u}q_x: Probability of dying between times tt and t+ut+u; =tpx⋅uqx+t= {}_{t}p_x \cdot {}_{u}q_{x+t}
  • μx\mu_x: Force of mortality at age xx

Insurance Notation

  • AxA_x: APV of whole life insurance (discrete, paid at end of year of death)
  • Aˉx\bar{A}_x: APV of whole life insurance (continuous, paid at moment of death)
  • Ax:n‾∣1A^1_{x:\overline{n}|}: APV of nn-year term life insurance
  • Ax:n‾∣A_{x:\overline{n}|}: APV of nn-year endowment insurance
  • 2Ax{}^2A_x: Second moment of PV of whole life insurance (use δ′=2δ\delta' = 2\delta)

Annuity Notation

  • a¨x\ddot{a}_x: APV of whole life annuity-due (payments at beginning of year)
  • axa_x: APV of whole life annuity-immediate (payments at end of year)
  • aˉx\bar{a}_x: APV of continuous whole life annuity
  • a¨x:n‾∣\ddot{a}_{x:\overline{n}|}: APV of nn-year temporary life annuity-due
  • n∣a¨x{}_{n|}\ddot{a}_x: APV of nn-year deferred whole life annuity-due

Premium and Reserve Notation

  • PxP_x: Net annual premium for whole life insurance
  • Px:n‾∣P_{x:\overline{n}|}: Net annual premium for nn-year endowment
  • tVx{}_{t}V_x: Net premium reserve at time tt for whole life insurance
  • tVx:n‾∣{}_{t}V_{x:\overline{n}|}: Net premium reserve at time tt for nn-year endowment

Commutation Functions

  • Dx=vxlxD_x = v^x l_x: Discounted number of lives
  • Nx=∑k=xωDkN_x = \sum_{k=x}^{\omega} D_k: Used for annuity calculations
  • Cx=vx+1dxC_x = v^{x+1} d_x: Discounted deaths
  • Mx=∑k=xωCkM_x = \sum_{k=x}^{\omega} C_k: Used for insurance calculations
  • Ax=Mx/DxA_x = M_x / D_x
  • a¨x=Nx/Dx\ddot{a}_x = N_x / D_x

Put these formulas to work

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