Date of Publication :24th March 2023

Abstract: Insurance Company helps parents to plan their children's education funding by offering one of the insurance products named Education Insurance (EI). Benefits offered by EI are the funding stages of education for children from primary school to college level, parents’life protection due to the death within n-year term insurance approach, as well as rider benefits (additional insurance) in the form of standard premium returned when the child dies and waiver of premium if the insured (the parent) has permanent total disability. The net single premium of this product is the sum of the base premiums, including the insured life protections premium and the standard premium for the education stage fund, as well as the rider premium which includes the waiver of premium and the return of premium. The premium calculation is based on the discrete calculation model where the payment of the insurance benefit is paid immediately after the claim by using a fractional age assumption. Age group of children (0 to 18) years using Balducci approach and age group (20 to 50) using UDD. The model obtained from this continuous discrete transformation enable the fair benefit at the point of age of the fraction when decrement occurs.

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