Unit-Linked Life Insurance Contract with Minimum Death Benefit Guarantee Using European Option Approach

Unit-Linked life insurance contract is protection and investment. In addition to the protection of a specified outcome occured , we are also going to get a return on investment of certain financial instruments. Today, insurance companies have been creative in the creation of a wide range of collateral to be added to the pure unit-linked insurance, such as the premium refunding, asset guarantee, renter insurance, ratchet. In this graduation paper the guarantee will be used is value of contract with european option. So if the value of asset decrease so badly, the insured will get the value of contract. Vise Versa, value of asset increase greatly , the insured get that value