Selection of Life Insurance Policy Using Case Base Reasoning

Abhishek Tyagi and Babita Pandey Department of Computer Science and Engineering Lovely Professional University Phagwara (Punjab)
In todays modern life style Life Insurance Policy plays very important role. It is insurance for family's peace of mind. Life insurance policy provides the basis of protection and financial stability after one's death. But the consumers faced the problem of selecting the suitable policy from the number of existing policies like Whole Life Insurance (WLI), Universal Life Insurance (ULI), Variable Life Insurance (VLI), and Variable Universal Life Insurance (VULI) of their benefits (www.mylifeinsuranceplace.com). In this Paper, we developed a case based reasoning system for a selection of suitable Insurance Policy. The selection of the policy is based on the certain features like Permanent Coverage regardless of age or health (PC), Cash Account & Investment (CAI), Investment Control(IC), Flexible Premiums (FP), Flexible Face Value (FFC), Tax deferred Income (TDI), Ability to Use Cash Account to Pay Costs and Fees (PCF), Minimum guaranteed Death Benefits (MGBD), Borrow against Cash Value (BACV), Withdraw from Cash Value (WCV),Cash Value Balance Returned on Surrender (CVBRS), Investment Type (IT), Interest Payable on Loans (IPL), Death Benefit can be either face value or Sum of face value and cash account(DBF)

(www.nolifeinsurancetm.com/compare/). The levels assign to each feature are High (H = 2), Medium (M = 1) and Low (L= 0). The weights assign to the features are on a scale of (0-1) according to their priority
(www.investopedia.com) in selection of policy. The problem description table is given in table 1. The First column in table 1 is policy and the rest of columns are the features of the policy. The values given in the brackets in each column is the corresponding weight assigned to the features.

(Table.1) Problem Description Table PC (.1 ) CAI (.05) IC (.05) FP (.1) FFC (.05) TDI (.1) PCF (.08) MGD B (.05) BAC V (.1) WC V (.1) CVB RS (.1) IT (.03) IPL (.02) DBF (.07)
Features (weight)/ Quality of life Insurance Policy WLI ULI VLI VULI

H H H H

H H H H

L L H H

L H L H

H H M H

H H H H

H H H H

H L H H

H H H H

H H L H

H H H H

M M H H

H H H H

L H L H

The formula for selecting best policy is given below:

DVi = |CBi NCi|; (i = l..n) With n: the entire feature count.

. (1)

DVi : the ith distance value between two ith feature , CBi: the ith value of feature of life insurance policy, NCi: the ith value of feature required by client.
PV j = DV j
j =1 n

.. (2)

Where PVj be the similarity value between the client and the jth life insurance policy . Where j =l..k, where k is the number of features.
V The life insurance policy for which P j is smallest is the best matched policy y V with the client requirement. The proposed system calculate the P j value of the policy and

the policy with highest PV value is the selected policy.