On recurrent single premiums in group insurance including waiver of premiums by disability

Abstract When group life insurance with recurrent single premiums was introduced 30 years ago in Sweden waiver of premium was not included. Later, it has been included against an additional premium determined as a simple proportional loading. In this note some principles will be presented for calculating premiums of waiver of recurrent single premiums (“natural” premiums) according to different technical systems for handling the disability risk. Reference is primarily made to the paper by Hoem, Riis & Sand (1971). In order to avoid difficulties of the notations we assume here the deferment or qualifying period to be zero and that the insurance only includes complete disablement (degree of disability equal to 1 ).