Full code (Term Life)

Full code for the Term Life model:

Input

#input.py
from cashflower import ModelPointSet
import pandas as pd


policy = ModelPointSet(data=pd.DataFrame({
    "sum_assured": [100_000],
    "mortality_rate": [0.003],
    "term": [36],
}))


interest_rate = 0.005

Model

#model.py
from cashflower import variable

from input import policy, interest_rate
from settings import settings


@variable()
def survival_rate(t):
    if t == 0:
        return 1
    else:
        q = policy.get("mortality_rate")
        return survival_rate(t - 1) * (1 - q)

@variable()
def expected_benefit(t):
    if t == 0 or t > policy.get("term"):
        return 0
    else:
        B = policy.get("sum_assured")
        q = policy.get("mortality_rate")
        return B *  survival_rate(t - 1) * q


@variable()
def net_single_premium(t):
    if t == settings["T_MAX_CALCULATION"]:
        return expected_benefit(t)
    else:
        v = 1 / (1 + interest_rate)
        return expected_benefit(t) + v * net_single_premium(t + 1)