Jurnal Matematika Integratif
Vol 18, No 1: April 2022

Last-Survivor Insurance Premium and Benefit Reserve Calculation using Gamma-Gompertz Mortality Law

Ruhiyat Ruhiyat (IPB University)
Windiani Erliana (IPB University)
Kenzi Lamberto (IPB University)
Elsie Ardelia (IPB University)

Article Info

Publish Date
27 May 2022

Abstract

When the insurance benefit of a last-survivor insurance product is payable at the moment of the last insured death, exploring continuous mortality models is essential to obtain the most appropriate premium and benefit reserve. In this study, Gamma-Gompertz mortality law was applied to Indonesian population mortality data at adulthood and old age stages to calculate the annual gross premium and gross benefit reserve of a whole life last survivor insurance product. The annual gross premium was computed using the actuarial equivalence principle. Results show that the older the policyholders purchase the product, the higher the annual gross premium they must pay. The gross benefit reserve needed to be set by the insurance company for the whole life last survivor insurance product was calculated using the prospective method. Its value grows for each valuation year until it approaches the insurance benefit amount.

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Journal Info
Jurnal Matematika Integratif
Website

Abbrev

jmi

Publisher

Universitas Padjadjaran

Subject

Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Electrical & Electronics Engineering Engineering Mechanical Engineering Transportation

Description

Jurnal Matematika Integratif (JMI) is a national journal intended as a communication forum for mathematicians and other scientists from many practitioners who use mathematics in research. JMI received a manuscript in areas of study mathematics widely, and math-based multidisciplinary studies derived ...