The effect of common risk on group insurance

• Authors: Nikodem-Słowikowska Anna
• Languages of publication: EN

Abstracts

EN

Group life insurance is a type of life insurance in which a single contract covers an entire group of people. In the contract a status that determines the termination of the policy is described. For example, in the case of the joint-life status the sum insured is paid because of the first death in the group. To compute the net single premium for a life insurance contract or for a life annuity, we have to calculate the probability that the status is still intact. In the classical group life insurance, it is assumed that the future life times of the insured are independent. This assumption is unrealistic in many practical situations. In this paper two statuses will be considered: the joint-life status and the last-survivor status. The common risk will be taken into account during premium calculation. The effect of the common risk on the group life insurance will be demonstrated in numerical examples.

Keywords

EN

group life insurance; joint-life status; last-survivor status; net single premium; common risk

• Publisher: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
• Journal: Mathematical Economics
• Year: 2011
• Issue: 7 (14)
• Pages: 155-168

Contributors

author

Nikodem-Słowikowska Anna

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