Linear Incremental Life Insurance Model With Stochastic Interest Rate And Its Application

Incremental life insurance is a more important type of insurance than variable life insurance.It can not only deal with inflation,but also protect people's lives.It is very popular in the insurance market of our country,so it is of great significance to study incremental life insurance.In this paper,based on the existing research and considering the actual situation of premium,firstly,the present value model of incremental life insurance payment under Brownian movement with single stochastic interest rate is adopted,and MATLAB is used under the death force of DeMoivre^[42]simulation calculation,compare the numerical solution of present value of payment under different parameters,preliminarily determine that the model is reasonable,then use double random interest rate to combine Brownian movement process with Poisson movement process to establish the present value of payment model,still use MATLAB simulation calculation under DeMoivre death force,compare the numerical solution of present value of payment under different parameters,and get the interest rate Some important conclusions of disturbance.Comparing the two kinds of stochastic processes,we can see that when there are multiple interferences,the interest rate fluctuates more frequently and increases slowly with the increase of parameters.Although the return rate of life insurance model with single stochastic interest rate is higher than that with double stochastic interest rate,the present value of payment model with double stochastic interest rate has more practical significance due to the influence of market economy factors.