Description: This paper presents an in-depth analysis of life insurance protection which rises with increases in the consumer price index, with special attention to the nonforfeiture values. Two methods of calculating policy values are presented: change of state method and index accumulation method. Finally, there is some discussion of pricing and policy drafting.

Description: Suggestions have been made that life insurance cash values should depend on the prospective mortality, based on underwriting, of the insured evaluated at the time a cash value is applied for. This paper explores a simple model for determining cash values on such a basis and some practical problems associated with it.