Pricing of variable long-term care annuities with guaranteed lifetime withdrawal and limited hospitalisation coverage benefits

Sara S. Moosavi and Amir T. Payandeh Najafabadi

International Journal of Industrial and Systems Engineering, 2022, vol. 41, issue 2, 168-181

Abstract: Improvements in medical technology and longevity risk increase the popularity of healthcare insurance products. This article combines several well-known healthcare products and develops a theoretical model for a variable annuity product with some specific benefits. More precisely, the new product is a variable annuity product that accompanies with long-term care coverage, limited hospitalisation coverage and a guaranteed lifelong withdrawal benefit option. Under a non-arbitrage market (the geometric Brownian motion) investment, the fair lam sum premium of such insurance products has been evaluated. Using an MCMC simulation method, a numerical study has been conducted to illustrate the capability of the product.

Keywords: variable annuity; long-term care; life care annuity; guaranteed lifetime withdrawal benefit; hospitalisation coverage. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=123581 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijisen:v:41:y:2022:i:2:p:168-181

Access Statistics for this article

More articles in International Journal of Industrial and Systems Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().