Abstract
This paper studies a dual life insurance premium is determined with the combined status of last survivor and joint life involving two insurance participants who have a kinship relationship such as husband and wife, brother and sister, which they work in the same agency. In determining the policy to be made by the life insurance does not require two policies to be made, but enough to have only one policy. So that by having one policy expected premiums paid by life insurance participants to life insurance companies will be smaller than if you have to pay in two policies. Determination of insurance premiums dual life to be paid by an insurance party participant based on the chance of death from both life insurance participants, stating a condition that will continue as long as there is at least one member who is still alive and will cease after the death of the last person of its member, and also is an ongoing condition se long time all members of a combination of several people can survive and will stop after one of its members first dies, to determine the single premium and annual premium using the cash value of the initial life annuity from dual life insurance. Whereas the initial annuity cash value is influenced by the interest rate and discount factor and is also influenced by the combined life opportunity of the two insurance participants. Furthermore, from the chance of life will be obtained the chance of dying In formulating the chance of dying the insurance participant is used the Pareto distribution and to obtain the parameter values in the Pareto distribution the maximum Likelihood method is used. In order to obtain the chance of death and can be used to calculate a single premium and annual premium.
Highlights
Old age causes inability to earn income and results in economic difficulties for workers themselves and their families
Last survivor life insurance is a condition that will continue as long as there is at least one member who is still alive and will stop after the death of the last person of its members, while joint life life insurance is a condition that lasts for all members of the combined number of people can survive and will stop after one of their first members dies
Futami [6] states that the last survivor dual purpose insurance is that if the insurance participant, i.e. husband and wife at the time of their last death or at the end of the period of coverage is still alive the sum insured will be paid, while joint life's dual purpose insurance states that the sum insured will be paid if one of the husbands and the wife dies first
Summary
Old age causes inability to earn income and results in economic difficulties for workers themselves and their families. According to Futami [5] dual-purpose life insurance is a type of insurance which is a combination of pure dual-purpose life insurance and term life insurance which means that both within and at the end of the insurance period for policyholders, both death and survival will be paid for the sum insured. Futami [6] states that the last survivor dual purpose insurance is that if the insurance participant, i.e. husband and wife at the time of their last death or at the end of the period of coverage is still alive the sum insured will be paid, while joint life's dual purpose insurance states that the sum insured will be paid if one of the husbands and the wife dies first. In determining the chances of life and the chance of dying for last-life survivor and joint life life insurance are used the Pareto distribution [13] of an Italian economist named Vilfredo Pareto (1848-1923)
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