Examples

A 40 year old man claims for the cost of a house at £1.2m that he will need in 5 years' time for 20 years.

Claim:

• Cost of house in 5 years' time at £1.2 m allowing for mortality and accelerated receipt at -0.25%: £1.2m x 1.0477 = £1.21m

• Give credit for the reversion in 20 years' time allowing for mortality and accelerated receipt at 5% p.a.: £1.2m x 0.20144 = £0.24m

The first multiplier is simply the one-off multiplier at age 50 using the standard discount rate of -0.25%. There is no need to specify the discount rate because that is the default rate.

The second multiplier is the one-off multiplier at age 70 using the discount rate of 5% as specified in Swift v Carpenter. Specify this rate as the last figure in the formula as shown.

A 60 year old woman claims a dependency for the rest of her life of £10,000 a year upon her husband who died age 50 ten years ago. She also claims a dependency of £5,000 a year for the first 10 years after trial.

There are two approaches to this:

• 1) Use Tables E and F as suggested by Facts & Figures

• 2) the actuarially correct approach based on joint life expectancy.

You can use either approach by checking/unchecking 'Use Tables E and F' in the side bar.

As Facts and Figures accept in Part A7, the first approach tends to overstate the joint multiplier. The overstatement is considerable when the deceased and the dependent are of similar age.

1) Enter the correct details in the side bar and click 'Submit':

2) Enter the fomula for the joint multiplier:

3) For the first 10 years after trial enter the formula: