Fixed rate, premiums and insurance coverage for policyholders and insurance companies in traditional life insurance have increased certain risks. For this reason, we consider studying variable life insurance. The biggest difference between the two insurance is that whether the actual death benefit of volatility is changeable. This paper studied the change of the premium when the premium changes in proportion to the death benefit and when it is fixed. And, it put forward a way to pay the death benefit, named “pay off increasing amount insurance”. Finally, this paper simulated the mean and variance of the death benefit using Monte Carlo method, and also compared the advantage and disadvantages of each approach.
Published in | International Journal of Statistical Distributions and Applications (Volume 1, Issue 1) |
DOI | 10.11648/j.ijsd.20150101.12 |
Page(s) | 5-11 |
Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Variable Life Insurance, The Actual Death Benefit, Change in Proportion, Fixed Premium, Pay off Increasing Amount Insurance, Monte Carlo Method
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APA Style
Shiqi Dong, Shan Pang. (2015). Analysis of the Variable Life Insurance Based on Log-Normal Distribution. International Journal of Statistical Distributions and Applications, 1(1), 5-11. https://doi.org/10.11648/j.ijsd.20150101.12
ACS Style
Shiqi Dong; Shan Pang. Analysis of the Variable Life Insurance Based on Log-Normal Distribution. Int. J. Stat. Distrib. Appl. 2015, 1(1), 5-11. doi: 10.11648/j.ijsd.20150101.12
@article{10.11648/j.ijsd.20150101.12, author = {Shiqi Dong and Shan Pang}, title = {Analysis of the Variable Life Insurance Based on Log-Normal Distribution}, journal = {International Journal of Statistical Distributions and Applications}, volume = {1}, number = {1}, pages = {5-11}, doi = {10.11648/j.ijsd.20150101.12}, url = {https://doi.org/10.11648/j.ijsd.20150101.12}, eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsd.20150101.12}, abstract = {Fixed rate, premiums and insurance coverage for policyholders and insurance companies in traditional life insurance have increased certain risks. For this reason, we consider studying variable life insurance. The biggest difference between the two insurance is that whether the actual death benefit of volatility is changeable. This paper studied the change of the premium when the premium changes in proportion to the death benefit and when it is fixed. And, it put forward a way to pay the death benefit, named “pay off increasing amount insurance”. Finally, this paper simulated the mean and variance of the death benefit using Monte Carlo method, and also compared the advantage and disadvantages of each approach.}, year = {2015} }
TY - JOUR T1 - Analysis of the Variable Life Insurance Based on Log-Normal Distribution AU - Shiqi Dong AU - Shan Pang Y1 - 2015/09/02 PY - 2015 N1 - https://doi.org/10.11648/j.ijsd.20150101.12 DO - 10.11648/j.ijsd.20150101.12 T2 - International Journal of Statistical Distributions and Applications JF - International Journal of Statistical Distributions and Applications JO - International Journal of Statistical Distributions and Applications SP - 5 EP - 11 PB - Science Publishing Group SN - 2472-3509 UR - https://doi.org/10.11648/j.ijsd.20150101.12 AB - Fixed rate, premiums and insurance coverage for policyholders and insurance companies in traditional life insurance have increased certain risks. For this reason, we consider studying variable life insurance. The biggest difference between the two insurance is that whether the actual death benefit of volatility is changeable. This paper studied the change of the premium when the premium changes in proportion to the death benefit and when it is fixed. And, it put forward a way to pay the death benefit, named “pay off increasing amount insurance”. Finally, this paper simulated the mean and variance of the death benefit using Monte Carlo method, and also compared the advantage and disadvantages of each approach. VL - 1 IS - 1 ER -