Life insurance with life annuity

This paper constructs a model to measure longevity risk and explains the reasons for restricting the supply of annuity products in life insurance companies. According to the Lee–Carter Model and the VaR-based stochastic simulation, it can be found that the risk margin of the first type of longevity risk for ignoring the improvement of mortality rate is about 7%, and the risk margin of the second type of longevity risk for underestimating mortality improvement is about 7%. Therefore, the insurer needs to use cohort life table pricing premium and gradually prepares longevity risk capital during the insurance period.

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MENENTUKAN FORMULA PREMI TAHUNAN TIDAK KONSTAN PADA ASURANSI JOINT LIFE

E-Jurnal Matematika ◽

10.24843/mtk.2015.v04.i04.p104 ◽

2015 ◽

Vol 4 (4) ◽

pp. 152

Author(s):

I GEDE BAGUS PASEK SUBADRA ◽

I NYOMAN WIDANA ◽

DESAK PUTU EKA NILAKUSMAWATI

Keyword(s):

Life Insurance ◽

Insurance Contracts ◽

Life Annuity ◽

Single Premium ◽

Constant Interest ◽

Annual Premium

The aim of this research was to determine the annual premium formula that turns on the joint life insurance. This formula uses the reference insurance contracts of the previous research Insurance Models for Joint Life and Last Survivor Benefits. The first step is to determine the value of mortality tables by using the Table Helligman-pollard. Furthermore, determining the value of a life annuity and single premium. The results of this research was formula to be affected by the changing premium () with the increase and decrease in constant interest.

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NATURAL HEDGES WITH IMMUNIZATION STRATEGIES OF MORTALITY AND INTEREST RATES

Astin Bulletin ◽

10.1017/asb.2019.38 ◽

2020 ◽

Vol 50 (1) ◽

pp. 155-185

Author(s):

Tzuling Lin ◽

Cary Chi-liang Tsai

Keyword(s):

Interest Rates ◽

Life Insurance ◽

Value At Risk ◽

Interest Rate Risk ◽

Force Of Mortality ◽

Life Annuity ◽

Immunization Strategies ◽

Parallel Movement ◽

Proportional Change ◽

Force Of Interest

AbstractIn this paper, we first derive closed-form formulas for mortality-interest durations and convexities of the prices of life insurance and annuity products with respect to an instantaneously proportional change and an instantaneously parallel movement, respectively, in μ* (the force of mortality-interest), the addition of μ (the force of mortality) and δ (the force of interest). We then build several mortality-interest duration and convexity matching strategies to determine the weights of whole life insurance and deferred whole life annuity products in a portfolio and evaluate the value at risk and the hedge effectiveness of the weighted portfolio surplus at time zero. Numerical illustrations show that using the mortality-interest duration and convexity matching strategies with respect to an instantaneously proportional change in μ* can more effectively hedge the longevity risk and interest rate risk embedded in the deferred whole life annuity products than using the mortality-only duration and convexity matching strategies with respect to an instantaneously proportional shift or an instantaneously constant movement in μ only.

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HEDGING MORTALITY CLAIMS WITH LONGEVITY BONDS

Astin Bulletin ◽

10.1017/asb.2013.12 ◽

2013 ◽

Vol 43 (2) ◽

pp. 123-157 ◽

Cited By ~ 10

Author(s):

Francesca Biagini ◽

Thorsten Rheinländer ◽

Jan Widenmann

Keyword(s):

Life Insurance ◽

Insurance Industry ◽

Affine Structure ◽

Life Annuity ◽

Hedging Strategies ◽

Optimal Hedging ◽

Term Insurance ◽

Longevity Bonds ◽

Mean Variance ◽

General Affine

AbstractWe study mean–variance hedging of a pure endowment, a term insurance and general annuities by trading in a longevity bond with continuous rate payments proportional to the survival probability. In particular, we discuss the introduction of a gratification annuity as an interesting insurance product for the life insurance market. The optimal hedging strategies are determined via their Galtchouk–Kunita–Watanabe decompositions under specific, yet sufficiently general model assumptions. The results are then further illustrated by assuming a general affine structure of the mortality intensity process. The optimal hedging strategies as well as the residual hedging error of a gratification annuity and a simple life annuity are finally investigated with numerical simulations, which illustrate the nice features of the gratification annuity for the insurance industry.

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MENENTUKAN PREMI TAHUNAN UNTUK TIGA ORANG PADA ASURANSI JIWA HIDUP GABUNGAN (JOINT LIFE)

E-Jurnal Matematika ◽

10.24843/mtk.2015.v04.i04.p111 ◽

2015 ◽

Vol 4 (4) ◽

pp. 195

Author(s):

TRI YANA BHUANA ◽

I NYOMAN WIDANA ◽

LUH PUTU IDA HARINI

Keyword(s):

Interest Rate ◽

Life Insurance ◽

Married Couple ◽

Life Annuity ◽

Die Life ◽

Single Premium ◽

The Interest Rate ◽

Annual Premium ◽

Parent Child

Life insurance products consist of a single life insurance and joint life insurance. Joint life is a state where the rule die life is a combination of two or more factors, such as the husband-wife, parent-child. The research is to obtain the formula of the annual premium of joint life insurance with the age of x, y, and z. By using formula and constants Helligmann-Pollard will be determined value of mortality tables, life annuity and single premium to get the formula annual premium joint life insurance for three persons. In addition, this study also aims to get the number of annual premium joint life insurance for a household of three consisting of a married couple and one son with the ages of 50, 45, dan 15 years old, with the interest rate of 5% used. For the contract terms of one and two years, the annual premium of joint life for two persons respectively and greater than the joint life insurance of three persons. While for three to ten years contract, the annual premium of joint life insurance three person is bigger than the joint life insurance for two persons.

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Betting on Lives: The Culture of Life Insurance in England, 1695–1775. By Geoffrey Clark. Manchester: Manchester University Press, 1999. Pp. xiv, 241. ??45.00.

The Journal of Economic History ◽

10.1017/s0022050700260397 ◽

2000 ◽

Vol 60 (03) ◽

pp. 869-870

Author(s):

OLIVER M. WESTALL

Keyword(s):

Life Insurance

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Tuesday Evening

PMLA ◽

10.1017/s0030812900130524 ◽

1935 ◽

Vol 50 (4) ◽

pp. 1357-1357

Keyword(s):

Life Insurance ◽

Insurance Company ◽

Life Insurance Company ◽

Local Committee ◽

Tuesday Evening

On Tuesday evening the members of the Association, and attending members of their families, were entertained with a buffet supper at the Queen City Club at 7:30 p.m. at the invitation of Messrs. Joseph S. Graydon, John J. Rowe, and other Cincinnati friends of the Association. Following this supper an entertainment arranged by the Local Committee was presented in the Hall of the Western and Southern Life Insurance Company. Attendance: about 900.

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Assessing the Impact of Suicide Exclusion Periods on Life Insurance

Crisis ◽

10.1027/0027-5910/a000023 ◽

2010 ◽

Vol 31 (4) ◽

pp. 217-223 ◽

Cited By ~ 1

Author(s):

Paul Yip ◽

David Pitt ◽

Yan Wang ◽

Xueyuan Wu ◽

Ray Watson ◽

...

Keyword(s):

Life Insurance ◽

Accidental Death ◽

Insurance Policy ◽

Death Rates ◽

Insurance Policies ◽

Suicidal Death ◽

Insured Individual ◽

The Impact ◽

Insurance Data ◽

The Relationship

Background: We study the impact of suicide-exclusion periods, common in life insurance policies in Australia, on suicide and accidental death rates for life-insured individuals. If a life-insured individual dies by suicide during the period of suicide exclusion, commonly 13 months, the sum insured is not paid. Aims: We examine whether a suicide-exclusion period affects the timing of suicides. We also analyze whether accidental deaths are more prevalent during the suicide-exclusion period as life-insured individuals disguise their death by suicide. We assess the relationship between the insured sum and suicidal death rates. Methods: Crude and age-standardized rates of suicide, accidental death, and overall death, split by duration since the insured first bought their insurance policy, were computed. Results: There were significantly fewer suicides and no significant spike in the number of accidental deaths in the exclusion period for Australian life insurance data. More suicides, however, were detected for the first 2 years after the exclusion period. Higher insured sums are associated with higher rates of suicide. Conclusions: Adverse selection in Australian life insurance is exacerbated by including a suicide-exclusion period. Extension of the suicide-exclusion period to 3 years may prevent some “insurance-induced” suicides – a rationale for this conclusion is given.

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