Modelling and computer simulation of an insurance policy: A search for maximum profit

Abstract

We have developed a model for a life insurance policy. In this model the net gain is calculated by computer simulation for a particular type of lifetime distribution function. We observed that the net gain becomes maximum for a particular value of upper age of last premium. This paper is dedicated to Professor Dietrich Stauffer on the occassion of his 60-th birthday.Comment: This paper is dedicated to Prof. D. Stauffer on the occassion of his 60th birthday. Int. J. Mod. Phys. C (2003) (in press