Analysis of the Variable Life Insurance Based on Log-Normal Distribution
International Journal of Statistical Distributions and Applications
Volume 1, Issue 1, September 2015, Pages: 5-11
Received: Aug. 20, 2015;
Accepted: Aug. 28, 2015;
Published: Sep. 2, 2015
Views 4416 Downloads 180
Shiqi Dong, Central China Normal University, the Institute of Mathematical and Statistics, Wu Han, China
Shan Pang, Central China Normal University, the Institute of Mathematical and Statistics, Wu Han, China
Follow on us
Fixed rate, premiums and insurance coverage for policyholders and insurance companies in traditional life insurance have increased certain risks. For this reason, we consider studying variable life insurance. The biggest difference between the two insurance is that whether the actual death benefit of volatility is changeable. This paper studied the change of the premium when the premium changes in proportion to the death benefit and when it is fixed. And, it put forward a way to pay the death benefit, named “pay off increasing amount insurance”. Finally, this paper simulated the mean and variance of the death benefit using Monte Carlo method, and also compared the advantage and disadvantages of each approach.
Variable Life Insurance, The Actual Death Benefit, Change in Proportion, Fixed Premium, Pay off Increasing Amount Insurance, Monte Carlo Method
To cite this article
Analysis of the Variable Life Insurance Based on Log-Normal Distribution, International Journal of Statistical Distributions and Applications.
Vol. 1, No. 1,
2015, pp. 5-11.
Bowers, N.L., Gerber, H.U., Hickman, J.C., Jones, D.A. & Nesbitt, C.J. (1997). Actuarial Mathematics 2ed, The Society of Actuaries, Schaumburg.
Duncan, R. M. (1952). A retirement system granting unit annuities and investing in equities. Transactions of the Society of Actuaries, 4(9): 317-344.
Fraser, J. C., Miller, W. N., & Sternhell, C. M. (1969). Analysis of basic actuarial theory for fixed premium variable benefit life insurance. publisher not identified.
Miller, W. N. (1971). Variable Life Insurance Product Design. Journal of Risk and Insurance, 527-542.
China Association of Actuaries. (2010). Life insurance actuarial, 1-155. China Financial and Economic Publishing House.
Li Xianping. (2010). Foundations of Probability Theory, 3rd edition(In Chinese). Higher Education Press.
Kenneth Black, Harold D. Skipper. (1994). Life and Health Insurance, 13th Edition. Prentice Hall Press.
Del Moral P, Doucet A, Jasra A. (2006). Sequential Monte Carlo samplers. Journal of the Royal Statistical Society, Series B, 68(3): 411-436.
Holton, Glyn A. (1998). Simulating value at risk. The Journal of Performance Measurement, 3(1): 11-21.
D. F. Babbel. (1979). Measuring Inflation Impact on Life Insurance Costs. Journal of Risk an Insurance, 46(3): 425-440
Liu Jiazi, Jia Ke. (2010). The comparison of Coverage of variable life insurance in two different actuarial methods. Journal of Insurance Professional College (Bimonthly), 48-54.