# Life Insurance Products Valuation in R

Learn the basics of cash flow valuation, work with human mortality data and build life insurance products in R.

4 Hours17 Videos55 Exercises5,334 Learners4450 XPApplied Finance Track

or

## Course Description

Understanding the basic principles of life insurance products is essential for your personal financial planning, ranging from taking out a mortgage to designing your retirement plan and seeking financial protection for the risk of dying early. In this course, you'll study the time value of money and you’ll work with human mortality data to derive demographic markers (such as the life expectancy). Combining the basics of cash flow valuation with the calculation of survival and death probabilities in R will allow you to construct insightful tools to design life insurance products. You'll come out of this course understanding the valuation of life contingent claims: life annuities, which provide an income upon survival, and life insurance products, which pay a benefit upon death of the policyholder.

1. 1

### Valuation of Cash Flows

Free

Learn the basics of cash flow vectors and their valuation with discount factors. You will then evaluate investments based on their net present value and build your own mortgage calculator. Finally, you will learn about fixed and variable interest rates; and annual and monthly rates.

Cash flows and discounting
50 xp
Present value of a cash flow
100 xp
Net present value of investments
100 xp
Valuation
50 xp
Anywhere, anytime?
100 xp
Actuarial equivalence
50 xp
Saving for university
100 xp
Deposits of the saving plan
100 xp
Change of period and term structure
50 xp
The interest rates they are a-changin'
100 xp
From yearly to monthly interest rate
100 xp
Monthly mortgage loan payments
100 xp
2. 2

### Life Tables

Life tables play a vital role in life insurance products. In this chapter you will work with data sets from the Human Mortality Database by building meaningful visualizations to study the evolution of mortality data over age and time. You will also use survival and death probabilities.

3. 3

### Life Annuities

You will now act as an actuary working in a life insurance company. Learn about the basics of life annuity products and their valuation by working on cases ranging from simple life annuities to retirement plans.

4. 4

### Life Insurances

You will now deal with life insurance contracts. Learn how these products are relevant in your financial planning by designing whole life, temporary and endowment insurances.

In the following tracks

Applied Finance

Collaborators

#### Katrien Antonio

Professor, KU Leuven and University of Amsterdam

Katrien Antonio is professor in actuarial science at KU Leuven (Belgium) and the University of Amsterdam (The Netherlands). Katrien teaches data science methods for insurance and her research puts focus on insurance analytics. Have a look at her homepage to find out more .

#### Roel Verbelen

Statistician, Finity Consulting

Roel is a statistician and an R enthusiast who holds a PhD in Business Economics from KU Leuven (Belgium). His main interest lies in the use of advanced data analytical methods in the general insurance sector. Have a look at his homepage to find out more .