A model of variable life insurance with stochastic interest rates

A semi-continuous model for stochastic interest has been established,which is done according to reflected Brownian motion and Poisson process.Based on this model,the premium,annuity and reserve of the life insurance theory have been studied.Then not only the interest rate can be guaranteed to be positive,but also the volatility of stochastic interest rate can be controlled effectively by adjusting parameters,so that the impact of interest rate risk may be reduced to some extent.