Post, Thomas - Sonderforschungsbereich Ökonomisches Risiko <Berlin> - 2009
A deferred annuity typically includes an option-like right for thepolicyholder. At the end of the deferment period, he … may either choose toreceive annuity payouts, calculated based on a mortality table agreed to atcontract inception, or … annuity on the marketgranting him a better price. If, however, mortality improves more thanexpected, the policyholder will …
