Joint life insurance policies with differential benefits and premiums to the policyholders

Abstract

In this paper actuarial justification is explored in details for equal or unequal sharing of premiums and benefits between policyholders in a product involving joint lives. The analysis reveals a fundamental difference between endowment and assurance type of products in this regard. In assurace plans, there is a clear basis for differential strucutre in terms of sharing premium payment that is illustracted with examples.