Money purchase” pensions: contract proposals and risk analysis

The Authors propose a personal pension product, consisting of a non-traditional profit sharing life insurance contract where the insured is allowed to share the profit of the pension’s invested funds all along the contract duration, that is from the issue time till the insured’s death. In its concrete realization, the idea comes true as a sequence of premiums characterized by a level cap, followed by the sequence of benefits characterized by a level floor. The two embedded options are inserted in the basic structure of a pension annuity. Due to the negligibility of the pooling effect in such kind of portfolios, the impact of the accidental demographic risk source is investigated.