The paper considers systems of payments which are not fully funded, i.e. partially funded or fully unfunded. Generally, the objective is to be able to establish a premium formula which is consistent with long term planning as to e.g. a target rate of funding, limited variation in premiums from year to year, etc. The premium formulas considered are those which relate premiums to prior years’ premiums, claims experience and accumulated funds.
The purpose of this short note is to explain a simple method of constructing a life table, given an explicit function for the force of mortality, µx, for all x.