Models for Level Premiums Payable to Benevolent Funds

Abstract

The application of multiple life actuarial calculations have been stud ied by many authours for instance Elizondo [3] studied the construction of multiple decrement models from associated single decrement expe riences.He posits that it is convenient to use the survival functions for the projection of future obligations in cash flows. Bowers [2] studied the actuarial calculations which are common in estate and gift taxation.The actuarial calculation is also common in insurance where stipulated pay ment called the benefit, one party (the insurer) agrees to pay to the other (the policyholder or his designated beneficiary) a defined amount (the claim payment or benefit) upon the occurrence of a specific loss while the insured pays periodic payment called premium. SACCOs and institution provide benevolent in terms of insurance against some losses, especially death. Unfortunately such organizations determine their pre miums arbitrarily, thus one cannot tell whether such products are de generating or not,this is because in such bodies benevolent funds and the mainstream operation fund are usually confounded.In this paper we develop models for level premiums for Saccos and Institutions provid ing benevolent funds, that is premiums is independent on the number of beneficiaries.We will use models of joint life,last life and multiple decrements to develop this model.