In this article, we discuss a life insurance scheme-Child Plan. We use the Lee-Carter and the CBD Models to forecast mortality data of US and UK in order to quantify the Plans. We compare the Child Plan with a Single Life Insurance Plan, and find that the Child Plan has a lower price (net premium) and is less sensitive to mortality risk. So, we draw a conclusion that the Child Plan has an inner hedging system owing to a joint death probability design. We also find that additional benefit conditions-income benefit and both parents insured will increase the price of the Child Plan and cause a higher risk to the insurer. And the older the insurers are, the higher the price and the degree of sensitivity to mortality risks are.

Netspar, Network for Studies on Pensions, Aging and Retirement, is een denktank en kennisnetwerk. Netspar is gericht op een goed geïnformeerd pensioendebat.

MEER OVER NETSPAR


Missie en strategie           •           Netwerk           •           Organisatie           •          Magazine
Netspar Brief            •            Werkprogramma 2019-2023           •           Onderzoekagenda

OVER NETSPAR

Onze partners

B20210618_Achmea_logo_grey
B20160708_universiteit utrecht
B20160708_erasmus
B20160708_ministeries
B20210909_SPMS_logo download greyscale smaller
Bekijk al onze partners