Life insurance and life annuities are about cash flows, the time value of money, and the randomness of policyholders' death time. This book intends to present the actuarial model as a combination of these three factors. It also describes how to set premiums and reserves for those insurance products.The subjects are closely related to the Society of Actuaries (SOA) course MLC requirements. Some examples and exercise problems come from past SOA Course 3, Course M, and Course MLC examinations.