freqCharge: Defines a frequency charge (surcharge for...

In kainhofer/r-life-insurance-contracts: Framework for Traditional Life Insurance Contracts

Defines a frequency charge (surcharge for monthly/quarterly/semiannual) premium payments

Description

Tariffs are typically calculated with yearly premium installments. When premiums are paid more often then one a year (in advance), the insurance receives part of the premium later (or not at all in case of death), so a surcharge for premium payment frequencies higher than yearly is applied to the premium, typically in the form of a percentage of the premium.

This function generates the internal data structure to define surcharges for monthly, quarterly and semiannual premium payments. The given surcharges can be either given as percentage points (e.g. 1.5 means 1.5% = 0.015) or as fractions of 1 (i.e. 0.015 also means 1.5% surcharge). The heuristics applied to distinguish percentage points and fractions is that all values larger than 0.1 are understood as percentage points and values 0.1 and lower are understood as fractions of 1. As a consequence, a frequency charge of 10% or more MUST be given as percentage points.

Currently, the frequency charges are internally represented as a named list, list("1" = 0, "2" = 0.01, "4" = 0.02, "12" = 0.03), but that might change in the future, so it is advised to use this function rather than explicitly using the named list in your code.

Usage

freqCharge(monthly = 0, quarterly = 0, semiannually = 0, yearly = 0)

Arguments

monthly	Surcharge for monthly premium payments
quarterly	Surcharge for quarterly premium payments
semiannually	Surcharge for semi-annual premium payments
yearly	Surcharge for yearly premium payments (optiona, default is no surcharge)

kainhofer/r-life-insurance-contracts documentation built on Sept. 18, 2022, 7:56 p.m.