PROSPECTIVE RESERVE AND FULL PRELIMINARY TERM RESERVE ON ENDOWMENT LAST SURVIVOR LIFE INSURANCE USING CLAYTON COPULA

Combined life insurance is a type of insurance that protects two or more people who are related by family and is divided into two, namely joint-life life insurance and last-survivor life insurance. The last survivor life insurance is a condition of life insurance that will continue if there is at least one of all insurance participants who is still alive and will stop if all insurance participants die. The insurance company has to pay the benefit to the heirs of the insurance participant. When a claim occurs, the insurance company must prepare the reserve fee. The purpose of this research is to determine the amount of premium reserve of endowment last-survivor life insurance using prospective reserve and full preliminary term reserve. Full preliminary term reserve is one of the modified premium reserve calculations from Zillmer Reserve. To determine prospective reserve and full preliminary term reserve using the initial life annuity, single premium, and annual premium. Whereas the initial life annuity is influenced by the combined life and death opportunity of the insurance participants. Furthermore, the combined life and death opportunity of insurance participants will be obtained from Clayton copula and to obtain the parameter of Clayton copula, Rstudio software is used. Based on the result, the value of prospective reserves and full preliminary term reserves has increased every year and prospective reserves produce a greater value than full preliminary term reserves. If the insurance company uses this reserve calculation, the reserve that the company must prepare will increase every year. This is useful for insurance companies in predicting the amount of reserves they must have.