| dc.description.abstract | The purpose of this project was to design and price a unit linked endowment assurance product
that pays benefits on maturity, provides protection in case of death during the policy term, and
pays the insured a percentage of their previous salary when they lose their job.
The key assumptions made include; - risk discount rate of 12% per annum, interest rate of 8% per
annum, surrender rate of 15% per annum, mortality tables for Uganda assured lives from 2015-
2019, inflation rate of 9% among others
The research was quantitative in nature involving the manipulation of pre-existing (secondary)
data using profit testing pricing approach, use of assumptions and bases from various sources. For
example, interest rates and risk discount rates determined from the Bank of Uganda 10- year
Treasury bond as at April 2022, unemployment rates from UBOS Statistical abstract
From the output of the model, a typical 25-year-old male who pays monthly premium of UGX
207,437 for a 5-year policy term attains benefits of UGX 10,000,000 on maturity or fund value
and return of a percentage of premiums paid to his/her beneficiaries on death during the policy
term, with annual income benefit of UGX 200,000 | en_US |
