Bonus Life Insurance Model Base On Option Pricing

As people need more and more investment and safeguard, the traditional life insurance can't satisfy people's demand. So the insurance agent empolders many new kinds insurance, such as bonus life insurance. But these insurances aren't priced by the traditional methods, then this paper gives a new insurance model.This paper includes four parts as follows .In Chapter 1, we introduce the model of traditional life insurance, mainly includes term life insurance,whole life insurance and endowment insurance, and in each model includes net single premium and uniform single premium .In Chapter 2, we mainly introduce the background of bonus life insurance and several methods of melon-cutting .The Chapter 3 is main parts of this paper .Take no account of death rate , in the method of option pricing , we prove that the rational price of bonus life insurance is given by the stochastic differential equationThe Chapter 4 is conclusion .