THE ANALYSIS OF ANNUAL INSURANCE PREMIUM VALUES ON THE LATEST SURVIVOR OF TERM LIFE INSURANCE WITH DE MOIVRE’S LAW

Abstract

The uncertainty in this life often put human being at risk situation which further cause disadvantages. The effort that can be taken in order to finding the solution towards allocating such this risk is life insurance. One of the developing life insurance in Indonesia is term life insurance which is divided into joint- term life insurance and last survivor-term life insurance. The difference between them lies on its premium payment. The payment for former is carried out until the death of the first person from the number of participants within a year, while that for later is carried out until the death of the last person of the number of participants in the year. Someone who registered for term life insurance product must pay a premium each year until n year, called the annual premium. The annual premium can be calculated based on general formulas using mortality tables and De Moivre's law. In this study, the analysis of the annual premium value of the last survivor-term life insurance was analyzed without using the law and by using the De Moivre’s law. The calculation using De Moivre’s law resulted greater value than that using general formula. Keywords: Annual premium, De Moivre’s law, Life insurance, The last survivorterm life insurance.