Realistic Assumptions

  • Summing up, it seems to me that reasonable assumptions for annual premium policies must recognize the long-term commitments in question, and thus should consist of a realistic current mortality table with projection into future years, together with an interest rate not higher than 3% and preferably somewhat lower.

--  Wilmer A. Jenkins

1961 - SOA - Ordinary Insurance Premiums, Society of Actuaries - 3p