PENENTUAN CADANGAN DISESUAIKAN DENGAN METODE ILLINOIS PADA ASURANSI JIWA ENDOWMEN SEMIKONTINU

Abstract

Semicontinuous endowment insurance is a kind of insurance with a periodic premium payments which gives two benefits, payment of death benefit at the moment of death if the insured dies during a certain period of years or payment of living benefit if the insured survives to the end of the period. The insurer’s obligation of insured’s premium payments, provides net level premium reserves for benefit payment in the future. The insurer needs expenses for it’s operate and in fact, the first year expenses usually exceed the loading. This means that an insurance company have to find funds to cover the first year expenses. The funds can be obtained by modified reserve system. To get information of modified reserve value for semicontinuous life insurance, the study of determination of modified reserve value using Illinois method has been done. The full net level reserves are lesser than the reserves under the Illinois method before the end of min(n, 20) years and both of these reserves will be equal at the the end of min(n, 20) years, with n is premium period.