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Abstract
In this paper we develop a new method for valuing universal life policies via a zero-coupon bond replicating portfolio. The method combines the idea of replicating portfolio with that of a fixed point. In addition, we accompany the proposed method with an equation relating account value, reserve and present value of future profits.
Received: 2006-10-25
Revised: 2009-06-15
Published Online: 2010-08-11
Published in Print: 2010-August
© de Gruyter 2010
