Title

Life Insurance Pricing

Document Type

Oral Presentation

Location

SURC 202

Start Date

16-5-2013

End Date

16-5-2013

Abstract

This project analyzes premium rates in a basic form that would be used by insurance companies. The purpose of this project is to understand, analyze, and replicate insurance premiums that clients will spend on purchasing their life insurance or life annuities for retirement. This also gives individuals a good idea what they can expect to pay under different insurance contracts, assuming no expenses and profit earned by the insurer. So far we have used a standard life table from the book Actuarial Mathematics by Bowers, Gerber, Hickman, Jones, and Nesbit. We took this life table and then generated probabilities of survival, life expectancy, discount rates, and actuarial present values for both life annuities and life insurance. Future implementation can be done using real-world life tables. By using Microsoft Excel we have created a user friendly application for determining what one’s price will be while purchasing contracts from an insurance company. These pricing values are determined given their age, market interest rate, desired death benefit amount, and term length. The pricing values will be returned to the user in a way that they may compare prices. They can compare life insurance prices according to annual prices verse monthly prices for whole life verse term life insurance. It will also allow them to see what payments are necessary now for future life annuities for retirement.

Faculty Mentor(s)

Yvonne Chueh

Additional Mentoring Department

Actuarial Science

This document is currently not available here.

Share

COinS
 
May 16th, 9:50 AM May 16th, 10:10 AM

Life Insurance Pricing

SURC 202

This project analyzes premium rates in a basic form that would be used by insurance companies. The purpose of this project is to understand, analyze, and replicate insurance premiums that clients will spend on purchasing their life insurance or life annuities for retirement. This also gives individuals a good idea what they can expect to pay under different insurance contracts, assuming no expenses and profit earned by the insurer. So far we have used a standard life table from the book Actuarial Mathematics by Bowers, Gerber, Hickman, Jones, and Nesbit. We took this life table and then generated probabilities of survival, life expectancy, discount rates, and actuarial present values for both life annuities and life insurance. Future implementation can be done using real-world life tables. By using Microsoft Excel we have created a user friendly application for determining what one’s price will be while purchasing contracts from an insurance company. These pricing values are determined given their age, market interest rate, desired death benefit amount, and term length. The pricing values will be returned to the user in a way that they may compare prices. They can compare life insurance prices according to annual prices verse monthly prices for whole life verse term life insurance. It will also allow them to see what payments are necessary now for future life annuities for retirement.