The Caps and Floor Limits on Premium Periodic Unit-Linked Insurance with Minimum Guarantee

DOI

10.2991/aebmr.k.210831.025How to use a DOI?

Keywords

Unit-Linked Endowment Insurance, Minimum Guarantee, Caps and Floor Limits on Premium

Abstract

Unit-linked endowment insurance with a minimum guarantee not only provides life protection to customers until the end of the insurance contract period but also provides investment protection, especially stock investments that have high returns and high investment risks, so call options are needed to protect investments. This study discusses premiums’ calculation along with the caps and floor limits of premiums on unit-linked endowment insurance products with minimum guarantees using Monte Carlo simulations with stochastic and continuous model and numerical methods. Unit-linked insurance with stock investment and mortality tables in this study shows that in addition to gender, the customer’s initial age has a policy, insurance contract, and amount minimum guarantee, the caps and floor limits of the premium are influenced by the proportion of investment from the premium. The interval between the caps and floor limits of the premium is more comprehensive if the premium’s investment proportion is small so that the insurance company can use the caps limits of the premium.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Putu Febani Wisanta
AU  - Bona Christanto Siahaan
PY  - 2021
DA  - 2021/09/02
TI  - The Caps and Floor Limits on Premium Periodic Unit-Linked Insurance with Minimum Guarantee
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 121
EP  - 125
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.025
DO  - 10.2991/aebmr.k.210831.025
ID  - Wisanta2021
ER  -