Multiple Decrement Models

Shailaja Deshmukh
Additional contact information
Shailaja Deshmukh: University of Pune, Department of Statistics

Chapter Chapter 1 in Multiple Decrement Models in Insurance, 2012, pp 1-52 from Springer

Abstract: Abstract In some life insurance policies, benefit to a single life or a group is subject to a type of contingency. For example, the death of an individual may be due to an accident or due to any other cause. In most of the insurance policies the coverage is first given for the base cause, and then there are policy riders for additional benefits. If the death is due to an accident, then the benefit structure is different, and usually the benefit is more than the base coverage. In such cases, the benefit structure and consequently the premium structure depend on time to death as well as on the cause of death. Survivorship models incorporating two random mechanisms, time to termination, and various modes of termination are known as multiple decrement models. Chapter 1 introduces multiple decrement model and the construction of multiple decrement table. Section 1.2 discusses the joint distribution theory of time to decrement and cause of decrement random variables with several illustrative examples. The highlight of the book is its usage of R software for statistical computations. R software is freely available from public domain. A brief introduction of R software is given in the second section, and R code is used for all the computations in subsequent chapters. Sections 1.3 and 1.4 are devoted to the construction of multiple decrement table, using associated single decrement model and central rate bridge. R commands are given for the construction of multiple decrement table.

Keywords: Pension Fund; Probability Mass Function; Employee Benefit; Periodic Payment; Benefit Structure (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-81-322-0659-0_1

Ordering information: This item can be ordered from
http://www.springer.com/9788132206590

DOI: 10.1007/978-81-322-0659-0_1

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().