Reply To: Interview Ques of CT5

[nancydhingraParticipant]

In any circumstance, i think, the insurer would prefer to pay in arrear. As in the case of a whole life annuity, the value of annuity due is always greater than annuity arrear (at a particular age).

This is because of added factor, ie the probabity of survival.

Annuity due has one payment assured whereas arrear does not

I am not sure of my ans though. If i am wrong , do correct me

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