Multiple state models for critical illness policy
Multiple state models for critical illness policy

Author(s): Lucie Kopecká, Ján Gogola
Subject(s): Socio-Economic Research
Published by: Masarykova univerzita nakladatelství
Keywords: multiple state model; stochastic process; Markov process; critical illness;
Summary/Abstract: The main goal of this paper is to apply multiple state models for an insurance policy combining disability income insurance benefits and critical illness benefits. We consider a policy with term 40 years to a life aged 25 which provides a death benefit, a disability benefit and a critical illness benefit. Using the data supplied by the Continuous Mortality Investigation (CMI) we calculate the premium payable continuously for this policy.

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