Special Needs Insurance: More Stability for a Growing Family's Budget

Objective.— To propose an insurance product called special needs insurance. The insurance will pay parents a lump sum up to $100,000 if they have a child that is born with or develops a special needs condition such as Down syndrome, cerebral palsy or autism. Background.— Raising a child is expensive; raising a child with a special need can be hundreds of thousands of dollars more expensive. These additional costs include direct costs that are not covered by health insurance and indirect costs such as the loss of earnings when a working parent must tend to a special needs child. Method.— We analyze a gamut of birth and early childhood disabilities, both physical and cognitive, from the medico-actuarial perspective. We describe each condition using relevant medical literature and calculate prevalence rates from epidemiological studies (appendix A1-A15). After accounting for multiple births, we develop a final premium. Results.— We find that physical impairments are sufficiently well understood to guarantee a fixed payout, whereas cognitive impairments such as autism are less understood, and so for these we propose a cognitive fund that does not guarantee a fixed payout. We find that an average single premium of $4,600 allows the insurer to profitably pay out the proposed benefits. Conclusions.— Raising a special needs child can put a significant strain on the affected family's budget. We propose an insurance product that provides relief through a large lump sum payout. Although no new insurance product can be guaranteed success, our analysis of this product gives an interested insurer reasonable justification to take on this new risk.

Austria

The insurance sector is experiencing low growth, stemming mainly from life business and a prolonged low-interest-rate environment. While the total assets have increased in nominal terms, it has underperformed GDP growth. Some segments, in particular single-premium products in life insurance, are suffering from material declines of premiums. Insurers are coping with the challenges with large-scale mergers domestically and international expansions. The duration gap between asset and liabilities was one of the highest among the European peers. The average guaranteed rates remain high, while the investment returns continue to decline.

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It is a taking an interest non-connected arrangement which offers an alluring blend of security against death all through the term of the arrangement alongside the occasional installment on endurance at determined spans during the term. This one of a kind mix gives money related help to the group of the perished policyholder whenever before development and singular amount sum at the hour of development for the enduring policyholders. This arrangement likewise deals with liquidity needs through its advance office LIC New BimaBachat Plan (Table 816) is a solitary premium Money Back Plan.In this arrangement the premium is paid just once. 15% of the Sum Assured is paid after at regular intervals and the whole Single Premium paid in addition to Loyalty Additions is paid toward the finish of the strategy term. Be that as it may, if the Life Insured passes on inside the arrangement residency, the whole Sum Assured is paid independent of the measure of cash paid as Survival Benefit. Administration Tax is material on the premium paid for this strategy, at the pace of 3.625% of the lumpsum premium paid.

PENENTUAN PREMI TUNGGAL BERSIH ASURANSI JIWA BERJANGKA BERDASARKAN STATUS MULTIPLE DECREMENT

Insurance is an attempt of risk diversion by the insured person to the insurance company. The risk is referred to the future event that will potentially cause a financial loss. Based on many risk factors,the status of insurance was divided into a single decrement and a multiple decrement. In single decrement, the only factor caused benefit payment is death, while in multiple decrement there is more than one factors caused benefit payment. As a consequence, beside the random variable of time until termination , there is another random variable appears that is the cause of decrement . The aim of this study was to describe the development process of a multiple decrement table and determine net single premium based on multiple decrement status. This study was conducted by describing the construction process of components in the multiple decrement table using joint distribution and marginal distribution for each random variable. This study is a various equation for constructing a multiple decrement table was obtained. That probability equation was also used to form the net single premium equation of term insurance based on multiple decrement status by using probability function of time until termination and cause of termination. Keywords: Term Insurance, Multiple Decrement, Net Single Premium

Premi Asuransi Jiwa Joint Life dan Last Survivor dengan Asumsi Balducci

Makalah ini membahas premi asuransi jiwa joint life dan last survivor dwiguna dengan peluang hidup menggunakan asumsi Balducci. Dalam hal ini peserta asuransi dibatasi hanya untuk dua orang yang berusia x dan y tahun dengan nilai tunai anuitas hidup awal yang menggunakan peluang hidup asumsi Balducci. Dalam asuransi jiwa last survivor perhitungan preminya berkaitan dengan asuransi jiwa perorangan dan asuransi jiwa joint life. Premi tahunan asuransi jiwa last survivor diperoleh dengan menentukan nilai tunai anuitas hidup dan premi tunggalnya. This article discusses the premium of endowment of life insurance of joint life and the last survivor status with life appourtunity using Balducci assumptions. In this article, insurance clients are limited to only two persons who are x and y years old with the premium paid until the last death of the insurance clients. In life insurance of the last survivor the premium is determined by associated with individual life insurance and life insurance joint life. The annual premium of life insurance of the last survivor is obtained by determining the present value of annuity and single premium.

Valuation of Guaranteed Unitized Participating Life Insurance under MEGB2 Distribution

Crisis events have significantly changed the view that extreme events in financial markets have negligible probability. Especially in the life insurance market, the price of guaranteed participating life insurance contract will be affected by a change in asset volatility which leads to the fluctuations in embedded option value. Considering the correlation of different asset prices, MEGB2 (multivariate exponential generalized beta of the second kind) distribution is proposed to price guaranteed participating life insurance contract which can effectively describe the dependence structure of assets under some extreme risks. Assuming the returns of two different assets follow the MEGB2 distribution, a multifactor fair valuation pricing model of insurance contract is split into four components: the basic contract, the annual dividend option, the terminal dividend option, and the surrender option. This paper studies the effect of death rate, minimum guaranteed yield rate, annual dividend ratio, terminal dividend ratio, and surrender on the embedded option values and calculates the single premium of the insurance contract under different influence factors. The Least-Squares Monte Carlo simulation method is used to simulate the pricing model. This article makes a comparison in the sensitivity of the pricing parameters under the MEGB2 distribution and Multivariate Normal distribution asset returns. Finally, an optimal hedging strategy is designed to cover the possible risks of the underlying assets, which can effectively hedge the risks of portfolio.

PEMODELAN MATEMATIKA PREMI TUNGGAL BERSIH ASURANSI UNIT LINK SYARIAH

The exact risk factor can be managed by transferring the risk to the other party (in this case the insurance company). In this paper will be discussed more life insurance, as the development now there are types of insurance combined with investment, which is popular with the term Unit Link insurance. Unit link Syariah began to be launched as one of the fulfilment of the high needs of the community, the privilege of the product Unit of Islamic links is actually located in the elements of the laws in accordance with Islamic Syariah. The issues that will be discussed are how to get a single premium model of life insurance unit link Syariah with life insurance and investment fund allocation invested in investment product with a big interest rate of risk (financial approach) and investment product with the value of return maximum (actuarial approach). The resulting model is then implemented in case of examples by comparing the two approaches to see the shortcomings and advantages of Unit link lifetime life insurance when compared to life insurance. The result obtained from this research is the benefit obtained from Unit-linked sharia insurance on average will be greater if compared with life insurance for life, maximum benefit will be obtained Insurance Unit Link of sharia using actuarial approach compared to financial, but benefit with a relative financial approach more stable than actuarial approaches that tend to fluctuate.

PREMI TUNGGAL ASURANSI JIWA SEUMUR HIDUP UNIT LINK DENGAN GARANSI MINIMUM DAN NILAI CAP MENGGUNAKAN METODE POINT TO POINT

Unit-linked whole life insurance is an insurance that combines traditional whole life insurance with modern insurance unit-links which provide both protection and investment. One of indexing method for calculating premium of unit-linked insurance is point to point method. The data used in this study was the closing price of PT. Astra Agro Lestari, Indonesia Tbk and The mortality table used in this research is Indonesia’s Mortalita Table III Men. It was obtained that the net single premium for whole life insurance unit-linked for the insured aged 45 years is amounted to Rp. 350.324,-