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.

• This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator

• Bresson, Jeffrey David

Publisher

• Worcester Polytechnic Institute

Identifier

• 01D200M

Advisor

• Wiedie, Ann H.

Year

• 2001

Sponsor

• John Hancock Mutual Life Insurance Company

Date created

• 2001-01-01

Resource type

• Major Qualifying Project

Major

• Actuarial Mathematics

Rights statement

• In Copyright

License

• All rights reserved