SINGLE PREMIUM FOR UNIT LINKED LIFE INSURANCE WITH ANNUAL RATCHET METHOD

• Main Author: Seftiani, Riri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/39041
• Institution: Institut Teknologi Bandung

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.