stochastic mortality risk and health shock risk numerically. These shocks are interpreted as critical illness and can negatively … affect the expected remaining lifetime, the health expenses, and the income. In order to hedge the health expense effect of a …

stochastic mortality risk driven by jumps, unspanned labor income as well as short-sale and liquidity constraints and a simple … insurance. I compare models with deterministic and stochastic hazard rate of death to a model without mortality risk. Mortality … risk has only minor effects on the optimal controls early in the life cycle but it becomes crucial in later years. A …

This paper studies the life cycle consumption-investment-insurance problem of a family. The wage earner faces the risk … of a health shock that significantly increases his probability of dying. The family can buy term life insurance with …

with recursive utility, as well as health-dependent income and mortality risk. Our estimates of the deep parameters … highlight the importance of health capital, mortality risk control, convex health and mortality adjustment costs and binding …Richer and healthier agents tend to hold riskier portfolios and spend proportionally less on health expenditures …

who faces stochastic capital market returns, uncertain health status, differential mortality risks, and uncertain out … individual welfare, combining them with health-contingent income products (resulting in so-called life care annuities) would …. Health status at retirement affects the extent to which the insurance feature and the pricing advantage of life care …