SINGLE PREMIUM FOR UNIT LINKED LIFE INSURANCE WITH ANNUAL RATCHET METHOD
Unit linked life insurance is insurance that provides risk cover for the policyholders with investment options such as stocks, bonds or mutual funds. At maturity, the method used to determine the contract benefit is annual ratchet method that applies the rate of return separately in each year of t...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/39041 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Unit linked life insurance is insurance that provides risk cover for the policyholders with investment options such as stocks, bonds or mutual funds. At
maturity, the method used to determine the contract benefit is annual ratchet
method that applies the rate of return separately in each year of the contract.
This method has the
oor rate and the cap rate, the
oor rate is guarantee
when the stock prices extremely go down and the cap rate is guarantee when
the stock prices extremely go up. In this research, the movement of the stock
prices are assumed using brownian motion. Single premium of unit linked life
insurance is present value from the contract benefit. There are many factors
that in
uence the unit linked benefit such as participation rate, rate of return,
oor rate and cap rate. The advantages of unit linked life insurance compared
to traditional life insurance can be seen from the amount of benefit because
the unit linked benefit has additional benefits from the investment returns. |
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