diff --git a/NAMESPACE b/NAMESPACE
index 2a20d65225811de469c0c720bdab9a40687b41e4..1588dbffacfa04548e63b4c79bc6f6635d35b78c 100644
--- a/NAMESPACE
+++ b/NAMESPACE
@@ -82,6 +82,7 @@ export(makeContractGridDimname)
export(makeContractGridDimnames)
export(pad0)
export(padLast)
+export(premiumRefundPeriod.default)
export(rollingmean)
export(setCost)
export(showVmGlgExamples)
diff --git a/R/HelperFunctions.R b/R/HelperFunctions.R
index ef96a531ed5a3ae0e0348f7fd1752bf5e7dc23b4..8c84b0eac893491fb146456121248cddaefa3821 100644
--- a/R/HelperFunctions.R
+++ b/R/HelperFunctions.R
@@ -144,8 +144,24 @@ isRegularPremiumContract = function(params, values) { params$ContractData$premiu
#'
#' @export
deathBenefit.linearDecreasing = function(len, params, values) {
- protectionPeriod = params$ContractData$policyPeriod - params$ContractData$deferralPeriod;
- pad0((protectionPeriod:0) / protectionPeriod, l = len)
+ protectionPeriod = params$ContractData$policyPeriod - params$ContractData$deferralPeriod;
+ pad0((protectionPeriod:0) / protectionPeriod, l = len)
+}
+
+
+#' Default premium refund period: for deferred contracts the deferral period, otherwise the whole contract
+#'
+#' If a premium refund is set for the tariff, the default is the full contract
+#' period, except for deferred contracts (typically deferred life annuities),
+#' for which the deferral period is the refund period.
+#'
+#' @param params The full parameter set of the insurance contract (including
+#' all inherited values from the tariff and the profit participation)
+#' @param values The values calculated from the insurance contract so far
+#'
+#' @export
+premiumRefundPeriod.default = function(params, values) {
+ ifelse(params$ContractData$deferralPeriod > 0, params$ContractData$deferralPeriod, params$ContractData$policyPeriod)
}
diff --git a/R/InsuranceContract.R b/R/InsuranceContract.R
index 1579491c152deb81da0048b52663b03da59d1457..33e1e650065a5b3a51ec80cb65b868d9c48ea7ac 100644
--- a/R/InsuranceContract.R
+++ b/R/InsuranceContract.R
@@ -1062,6 +1062,10 @@ InsuranceContract = R6Class(
self$Parameters$ContractData$policyPeriod,
params = self$Parameters, values = self$Values);
+ self$Parameters$ContractData$guaranteedPeriod = valueOrFunction(
+ self$Parameters$ContractData$guaranteedPeriod,
+ params = self$Parameters, values = self$Values);
+
#### #
# PREMIUM PAYMENT PERIOD (default: policyPeriod, can be given as function or numeric value)
#### #
@@ -1098,6 +1102,11 @@ InsuranceContract = R6Class(
self$Parameters$ContractData$policyPeriod
)
+ # Premium refund period (if applicable):
+ self$Parameters$ContractData$premiumRefundPeriod = valueOrFunction(
+ self$Parameters$ContractData$premiumRefundPeriod,
+ params = self$Parameters, values = self$Values);
+
#### #
# AGES for multiple joint lives:
#### #
diff --git a/R/InsuranceParameters.R b/R/InsuranceParameters.R
index cd44b442c0ed63d186f18c7b52daccd73eb2f4fe..bdacecd10276b103bd95381bdb3d263e871e4635 100644
--- a/R/InsuranceParameters.R
+++ b/R/InsuranceParameters.R
@@ -334,6 +334,11 @@ InsuranceContract.Values = list(
#' \item{\code{$benefitFrequency}}{Number of benefit payments per year, default is 1.}
#' \item{\code{$premiumRefund}}{Proportion of (gross) premiums refunded on
#' death (including additional risk, e.g. 1.10 = 110% of paid premiums)}
+#' \item{\code{$premiumRefundPeriod}}{The period, during which the premium
+#' refund on death applies. By default, deferred contracts will
+#' refund premiums only during the deferral period, all other
+#' contracts during the whole contract. Default is
+#' \code{premiumRefundPeriod.default}}
#' \item{\code{$premiumIncrease}}{The yearly growth factor of the premium,
#' i.e. 1.05 means +5% increase each year; a vector describes the
#' premiums for all years}
@@ -577,6 +582,7 @@ InsuranceContract.ParameterDefaults = list(
benefitFrequency = 1, # number of benefit payments per year (for annuities) or death benefit at the end of every 1/k-th year
premiumRefund = 0, # Proportion of premiums refunded on death (including additional risk, e.g. 1.10 = 110% of paid premiums)
+ premiumRefundPeriod = premiumRefundPeriod.default, # The time period, during which the premium refund upon death will be paid (default: deferral period, otherwise whole contract)
premiumIncrease = 1, # The yearly growth factor of the premium, i.e. 1.05 means +5% increase each year; a Vector describes the premiums for all years
annuityIncrease = 1, # The yearly growth factor of the annuity payments, i.e. 1.05 means +5% incrase each year; a vector describes the annuity unit payments for all years
deathBenefit = 1, # The yearly relative death benefit (relative to the initial sum insured); Can be fixed, e.g. 0.5 for 50% death cover, or set to a function(len, params, values) like deathBenefit = deathBenefit.linearDecreasing
diff --git a/R/InsuranceTarif.R b/R/InsuranceTarif.R
index 47820b352f7e15b0ef58bff2b7e4320b2bb52bcc..010c523f064cc2ca9fdbc1536a91eb7ff0f07b63 100644
--- a/R/InsuranceTarif.R
+++ b/R/InsuranceTarif.R
@@ -607,7 +607,7 @@ InsuranceTarif = R6Class(
# Death Benefits
cf$death_SumInsured = pad0(values$cashFlowsBasic$death, cflen);
if ((!is.null(params$Features$absPremiumRefund)) && (params$Features$absPremiumRefund > 0)) {
- cf$death_SumInsured = cf$death_SumInsured + pad0(padLast(params$Features$absPremiumRefund, cflen - 1), cflen);
+ cf$death_SumInsured = cf$death_SumInsured + pad0(padLast(params$Features$absPremiumRefund, min(cflen - 1, params$ContractData$premiumRefundPeriod)), cflen);
}
cf$disease_SumInsured = pad0(values$cashFlowsBasic$disease, cflen);
cf$death_PremiumFree = cf$death_SumInsured;
@@ -615,8 +615,8 @@ InsuranceTarif = R6Class(
if (params$ContractData$premiumRefund != 0) {
totalpremiumcf = cf$premiums_advance + pad0(c(0, cf$premiums_arrears), cflen);
- # death benefit for premium refund is the sum of all premiums so far:
- cf$death_GrossPremium = pad0(Reduce("+", totalpremiumcf[0:params$ContractData$policyPeriod], accumulate = TRUE), cflen)
+ # death benefit for premium refund is the sum of all premiums so far, but only during the premium refund period, afterwards it's 0:
+ cf$death_GrossPremium = pad0(pad0(Reduce("+", totalpremiumcf[0:params$ContractData$policyPeriod], accumulate = TRUE), params$ContractData$premiumRefundPeriod), cflen)
cf$death_Refund_past = cf$death_GrossPremium
cf$death_Refund_past[(cf$death_GrossPremium > 0)] = 1;
}
diff --git a/man/InsuranceContract.ParameterDefaults.Rd b/man/InsuranceContract.ParameterDefaults.Rd
index 5c8ad7a284641689c40471ead88c8528b32a14aa..ac7bfb515100fa2cd99b637b9e6604c1cdc1d557 100644
--- a/man/InsuranceContract.ParameterDefaults.Rd
+++ b/man/InsuranceContract.ParameterDefaults.Rd
@@ -94,6 +94,11 @@ are paid in advance (default) or arrears. Value is of type
\item{\code{$benefitFrequency}}{Number of benefit payments per year, default is 1.}
\item{\code{$premiumRefund}}{Proportion of (gross) premiums refunded on
death (including additional risk, e.g. 1.10 = 110\% of paid premiums)}
+\item{\code{$premiumRefundPeriod}}{The period, during which the premium
+refund on death applies. By default, deferred contracts will
+refund premiums only during the deferral period, all other
+contracts during the whole contract. Default is
+\code{premiumRefundPeriod.default}}
\item{\code{$premiumIncrease}}{The yearly growth factor of the premium,
i.e. 1.05 means +5\% increase each year; a vector describes the
premiums for all years}
diff --git a/man/premiumRefundPeriod.default.Rd b/man/premiumRefundPeriod.default.Rd
new file mode 100644
index 0000000000000000000000000000000000000000..6b04c5241e7e56e60a6bb68624fde33207bb070f
--- /dev/null
+++ b/man/premiumRefundPeriod.default.Rd
@@ -0,0 +1,19 @@
+% Generated by roxygen2: do not edit by hand
+% Please edit documentation in R/HelperFunctions.R
+\name{premiumRefundPeriod.default}
+\alias{premiumRefundPeriod.default}
+\title{Default premium refund period: for deferred contracts the deferral period, otherwise the whole contract}
+\usage{
+premiumRefundPeriod.default(params, values)
+}
+\arguments{
+\item{params}{The full parameter set of the insurance contract (including
+all inherited values from the tariff and the profit participation)}
+
+\item{values}{The values calculated from the insurance contract so far}
+}
+\description{
+If a premium refund is set for the tariff, the default is the full contract
+period, except for deferred contracts (typically deferred life annuities),
+for which the deferral period is the refund period.
+}
diff --git a/tests/testthat/test-CF-Annuity-Deferred.R b/tests/testthat/test-CF-Annuity-Deferred.R
index bfc70ac4b40eafa95afc0a3dc910b405f658bd20..7afdbec750bd2f80a47bc9afb4546c1d6e1a2ec9 100644
--- a/tests/testthat/test-CF-Annuity-Deferred.R
+++ b/tests/testthat/test-CF-Annuity-Deferred.R
@@ -28,14 +28,14 @@ test_that("Deferred Annuity Cash Flows", {
expect_equal(Contract.DefAnnuity$Parameters$ContractData$premiumPeriod, 25)
- expect_true(all(Contract.DefAnnuity$Values$cashFlows %>% select(-premiums_advance, -survival_advance, -death_GrossPremium, -death_Refund_past) == 0))
+ expect_true(all(Contract.DefAnnuity$Values$cashFlows %>% dplyr::select(-premiums_advance, -survival_advance, -death_GrossPremium, -death_Refund_past) == 0))
# 25 years premium cash flow
expect_equal(Contract.DefAnnuity$Values$cashFlows$premiums_advance, c(rep(1, 25), rep(0, 56)))
# premium payment start after 25 years
expect_equal(Contract.DefAnnuity$Values$cashFlows$survival_advance, c(rep(0, 25), rep(1, 55),0))
# premium payment start after 25 years
- expect_equal(Contract.DefAnnuity$Values$cashFlows$death_GrossPremium, c(1:25, rep(25, 55),0))
+ expect_equal(Contract.DefAnnuity$Values$cashFlows$death_GrossPremium, c(1:25, rep(0, 56)))
# death refund flag
- expect_equal(Contract.DefAnnuity$Values$cashFlows$death_Refund_past, c(rep(1, 80), 0))
+ expect_equal(Contract.DefAnnuity$Values$cashFlows$death_Refund_past, c(rep(1, 25), rep(0, 56)))
})
diff --git a/tests/testthat/test-premiumRefundPeriod.R b/tests/testthat/test-premiumRefundPeriod.R
new file mode 100644
index 0000000000000000000000000000000000000000..40bb1fe89de459691b0398ebdbac47b4f6011184
--- /dev/null
+++ b/tests/testthat/test-premiumRefundPeriod.R
@@ -0,0 +1,55 @@
+test_that("premiumRefundPeriod", {
+ library(MortalityTables)
+ mortalityTables.load("Austria_Annuities_AVOe2005R")
+
+ #--------------------------------------------------------------------------- -
+ # For deferred contracts, premium refund applies during deferral only by default
+ #--------------------------------------------------------------------------- -
+ Tarif.DefAnnuity = InsuranceTarif$new(
+ type = "annuity",
+
+ policyPeriod = function(params, values) { 120 - params$ContractData$age},
+ deferralPeriod = function(params, values) { 65 - params$ContractData$age},
+ premiumPeriod = function(params, values) { 65 - params$ContractData$age},
+ premiumRefund = 1,
+ mortalityTable = AVOe2005R.unisex
+ )
+ Contract.DefAnnuity = InsuranceContract$new(
+ tarif = Tarif.DefAnnuity,
+ age = 40, YOB = 1980,
+ sumInsured = 1200,
+ contractClosing = as.Date("2020-09-01"),
+ calculate = "cashflows"
+ )
+ expect_equal(Contract.DefAnnuity$Parameters$ContractData$policyPeriod, 80)
+ expect_equal(Contract.DefAnnuity$Parameters$ContractData$deferralPeriod, 25)
+ expect_equal(Contract.DefAnnuity$Parameters$ContractData$premiumPeriod, 25)
+ expect_equal(Contract.DefAnnuity$Parameters$ContractData$premiumRefundPeriod, 25)
+
+ # premium refund only during the frist 25 years (linearly increasing), then 0
+ expect_equal(Contract.DefAnnuity$Values$cashFlows[,"death_GrossPremium"], c(1:25, rep(0, 81-25)))
+ expect_equal(Contract.DefAnnuity$Values$cashFlows[,"death_Refund_past"], c(rep(1, 25), rep(0, 81-25)))
+
+
+
+ #--------------------------------------------------------------------------- -
+ # For all other contracts without deferral period, refund period is whole contract
+ #--------------------------------------------------------------------------- -
+ Tarif.PureEnd = InsuranceTarif$new(
+ type = "pureendowment",
+
+ policyPeriod = 25,
+ premiumRefund = 1,
+ mortalityTable = AVOe2005R.unisex
+ )
+ Contract.PureEnd = InsuranceContract$new(
+ tarif = Tarif.PureEnd,
+ age = 40, YOB = 1980,
+ sumInsured = 10000,
+ contractClosing = as.Date("2020-09-01"),
+ calculate = "cashflows"
+ )
+ # premium refund during the whole contract (25 years), the last year is the survival date without any death benefits
+ expect_equal(Contract.PureEnd$Values$cashFlows[,"death_GrossPremium"], c(1:25, 0))
+ expect_equal(Contract.PureEnd$Values$cashFlows[,"death_Refund_past"], c(rep(1, 25), 0))
+})