SINGLE PREMIUM TERM LIFE FOR UNIT LINKED LIFE INSURANCE WITH HIGH WATER MARK METHOD

• Main Author: Zahra Lazuardi Kusmana, Fathia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55024
• Institution: Institut Teknologi Bandung

Unit-linked life insurance is a type of modern life insurance that combines insurance benefits and investment benefits. In this research, the investment made is the investment of buying shares in BCA Bank with the movement of the stock price going up or down are assumed using the Binomial CRR Model. The method used to determine the amount of benefits for policyholder is High Water Mark method which provides the highest value achieved by an investment fund in a predetermined contract period. This method can cover the highest unit value when managing the insured's funds and can overcome the effects of market fluctuations. There are many factors that influence the unit linked benerfit with High Water Mark method, such as participation rate, premium return, investment proportion, rate of retunr, lower limit, and upper limit. The attraction of unit-linked life insurance compared to traditional insurance can be seen from the amount of benefit because there are additional benefits from investment returns.