Withdrawal Benefits Under a Dependent Double Decrement Model

This article presents an explicit formula for the value of a withdrawal benefit when the times of death and withdrawal are dependent. The derivation is based on an actuarial equivalence principle. As a special case, we show that m the fully continuous case, the withdrawal benefit is the reserve when the decrements are independent We also present a definition of antiselection and prove that the withdrawal benefit will be smaller under antiselection. Keywords: Dependent decrement theory, withdrawal equivalence principle, varying life insurance benefits, antiselection