11th Annual International Conference on Industrial Engineering and Operations Management

Life Insurance Premiums Dwiguna Joint Life and Last Survivor with Makeham Law

Hasriati Hasriati, Haposan Sirait, Agung Prabowo, Sukono Sukono & Abdul Talib Bon
Publisher: IEOM Society International
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Track: Operations Management

In this paper we determined dual life insurance premiums with the combined status of last survivor and join life involving two insurance participants who have kinship relationships such as husband and wife, brother and sister, where they work in the same agency. In determining the policy that will be made by the life insurance party does not require two policies to be made, but simply have one policy. So by having one policy it is expected that the premium paid by life insurance participants to the life insurance company will be smaller than if you have to pay in two policies. Determination of dual-use life insurance premiums that will be paid by participants to the insurance party based on the chance of death of both participants of life insurance, by stating a condition that will continue as long as there is at least one surviving member and will stop after the death of the last person of its members (all members die), and is also a state that lasts as long as all members of the combined several people can survive and will stop after one of its members first dies. To determine a single premium and an annual premium use the cash value of the initial life annuity of a dual-purpose life insurance. Meanwhile, the cash value of early life annuities was influenced by interest rates and discounted factor and also influenced the combined life chances of two insurance participants. Furthermore, before the annual premium is determined, it is first determined a single premium. In formulating the chances of death insurance participants use the Makeham Law, which is a development of the Gomperzt law. In this distribution there are constants used to determine the chances of life and the chance of death.

Published in: 11th Annual International Conference on Industrial Engineering and Operations Management, Singapore, Singapore

Publisher: IEOM Society International
Date of Conference: March 7-11, 2021

ISBN: 978-1-7923-6124-1
ISSN/E-ISSN: 2169-8767