Faculty Advisor

Wiedie, Ann H.

Abstract

A long-term care rider on universal variable life insurance was priced for John Hancock. Models for the random present values of cost and revenue (functions of lapse, account value, age of LTC, duration of LTC, and age of death) were built. The rider was priced by setting expected loss to zero, and funded through a percentage increase in COI charges. Data was used to estimate the distributions of the random components, and a C++ program written to make final calculations.

Publisher

Worcester Polytechnic Institute

Date Accepted

January 2001

Major

Actuarial Mathematics

Project Type

Major Qualifying Project

Accessibility

Restricted-WPI community only

Advisor Department

Mathematical Sciences

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