Introduction to Traditional Life (TL)

Traditional Life business including the followings:

1. Term Life
2. Whole Life
3. Critical Illness / Catastrophe cash
4. Annuity
5. Endowment
6. Participating
...

Basically, all what may not be classified as Universal Life / Unit-Linked will fall into traditional life business. The reason for grouping all these products into TL is due to their cashflow structure and reserving techniques. They usually have some predefined, guaranteed cashflows to be paid in the future (as we have introduced in previous chapter on "benefit payments"), and calculating the reserve using NPV / GPV reserving as statutory required.