Abstract:
This article discusses Zillmer reserve of endowment joint life life insurance for two
insurance participants who are x and y years old by using Lomax distribution.
The parameters in the Lomax distribution were estimated using maximum likelihood
estimation and then determined by a Newton-Raphson iteration method.
The calculation of this Zillmer’s reserve is obtained by using the prospective reserve
and Zillmer’s rate. The solution of this problem is obtained by determining
the initial life annuity joint life temporary, single premium, and annual premium,
then the Zillmer’s reserve formula is obtained based on the distribution of Lomax.
Zillmer’s reserves for endowment joint life life insurance using the Lomax distribution
is smaller than prospective reserve for endowment joint life life insurance using
the Lomax distribution.