Allow premiumRefund to be an absolute value rather than a fraction of the actual paid premiums
When modelling paid-up contracts as single-premium contracts starting at the premium waiver date (e.g. because historic data is not availalb...), the premium refund amount needs to be given as an absolute value and is NOT equal to the single premium calculated (due to premium waiver penalties, costs charged before paying up, etc.). In this case, premiumRefund cannot be relative to the charged premium, but needs to be an absolute value (e.g. relative to the sum insured).
-
generalize premiumRefund parameter or introduce a new absPremiumRefund parameter -
Adjust the premium coefficients for absolute values (coefficient in enumerator of gross premium, independent from gross premium in net / Zillmer premium) -
Adjust the absolute cash flows and the absolute present values so the absolute premium refund is not calculated from the gross premium, but the given absolute value
Or, alternatively, use the death_sumInsured cash flows instead, which conceptually seems like the more natural approach, since mathematically, the death benefit is no longer a premium refund of the new contract. The only issue is that for type="pureendowment", the deathBenefit parameter is ignored => Think of a good parameter interface to indicate an absolute premium refund!