Please Just Try to SubmLife Insurance Premium Calculation Using the Actuarial Single Life Table Method (TMI 2019)it This Sample Abstract Adinda Elsa Putri
Sriwijaya University
Abstract
This study examines the calculation of individual life insurance premiums using the actuarial
Single Life Table approach under the equivalence principle. Focusing on Indonesia^s
mortality basis (TMI 2019), we model annual premiums as the present value balance
between benefits and premiums, incorporating age- and sex-specific mortality, a
deterministic interest rate, and standard mortality laws. Prior evidence shows that male
mortality rates and higher ages raise premiums, while higher discount rates lower them.
Building on this, we (i) formalize the premium formula for level annual premiums, (ii) assess
the sensitivity of premiums to key inputs-age, sex, interest rate, and mortality
assumptions-and (iii) present an illustrative Indonesian case to demonstrate practical
pricing implications. The results highlight that age and sex are primary drivers, interest-rate
assumptions materially affect affordability, and the chosen mortality law (within the TMI
2019 framework) influences prudence levels. The framework offers an auditable,
transparent basis for fair pricing and can guide product design and risk-based differentiation
in the Indonesian life market.
Keywords: life insurance, Single Life Table, TMI 2019, equivalence principle, premium pricing
