Faculty Publications

Title

Annuity Pricing 102

Document Type

Article

Publication Date

8-18-2015

Abstract

In today’s post, I continue the discussion on Annuity Pricing 101 which I began recently. In today’s scenario, we’ll see what happens to the price of an annuity if: 1. We guarantee income will be provided for at least 10 years, regardless of whether the annuitant lives. 2. We provide a cash refund if the annuitant dies before at least receiving their full principal payment. 3. We include a cost-of-living adjustment for annuity payments.