A long-term care insurance model construction method based on property effectiveness
A construction method and utility technology, applied in the field of long-term care insurance model construction based on property utility, can solve problems such as no explanation, and achieve the effect of easy acceptance, reasonable price and accurate numerical value
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Embodiment 1
[0029] Embodiment 1, a kind of long-term care insurance model construction method based on property utility, its construction steps are:
[0030] S1: Set the insured person; the insured person is set as a person at retirement age.
[0031] S2: Set the insured person to accumulate wealth and insurance money; the set insured person's accumulated wealth is equivalent to W and an annual pension y that meets his needs.
[0032] S3: Set the total annual living expenses of the insured; the insured faces an irreversible risk of dependence, and the total annual living expenses are G+y. For simplicity, the price is constant, the interest rate is 0, and the time is Measured in units of integer years (as if spending the whole year at once).
[0033] S4: Set the bounded number of dependent life-years; the bounded number of dependent life-years 0≤t≤T is a random variable with a given probability p(t), where t is the interval between the age at death and the age at which the irreversible de...
Embodiment 2
[0046] Embodiment 2. After adding a load factor of a certain insurance, if an individual faces several risks that can be insured with the same load factor.
[0047] First, it is assumed that the annuity is insufficient to cover normal needs and must therefore be supplemented by an annual withdrawal of y* from wealth W. In cases of extreme longevity, this may not be feasible, so a portion of W would need to be converted into a lifetime annuity y*. When the loading factor f* of this annuity is equal to f, the individual remains self-sufficient for k** years, after which he receives a fixed amount y* each year plus a contingent amount G, if he has dependencies. The selection of the parameter k** follows the same logic as the selection of k* above.
[0048] The final result remains the same.
[0049] The same point applies to situations where an individual is exposed to risks other than lifespan, with the only proviso that the same load factors apply to the insurance for the dif...
Embodiment 3
[0050] Embodiment 3. First, set the insured person etc. according to the above steps.
[0051] The deductible level of the long-term care insurance model depends on two parameters: such as through the Arrow-Pratt relative risk aversion coefficient Rr:=-U VV .V / U V Measured load factor f and risk aversion of the insured (subscripts denote derivatives).
[0052] Drèze (1981) showed that the deductible as a lower bound on the share of bequeathable wealth can be calculated as the expression (1):
[0053]
[0054] Deductions increase in load factor and decrease in risk aversion, ranging from 0.25 to 0.50. With respect to risk aversion due to inter-individual variability and uncertainty in individual coefficients, the range is wider. Median coefficients between 2 and 3 seem to provide useful guidelines. Table 1 gives the description.
[0055] Table 1
[0056]
[0057] The first row shows the value of deductible D* as the lower bound of the share of legacy wealth V:=W-P-D*....
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