Abstract:
This article discusses Balducci assumptions on contingent term life insurance
premiums for two persons at the age x and y years old. Contingent life insurance is
an insurance whose payment are based on the sequence of the deceased insured. In
determining the order in which death is delayed, the compound contingent
function is used. In this article, net single premium contingent term life insurance,
annual contingent term life insurance premium and term life annuity are obtained
based on Balducci assumption, which is one of assuming a fractional age
assumption. The analysis produces that contingent term life insurance premium
value with Balducci assumption is smaller than contingent term life insurance
premium value without Balducci assumption.
