Continuous premium approximation in a disability model

Approximates a continuous premium rate by trapezoidal integration.

Usage

Pbar_trapz_ms(t, tp00, tp01, delta, mu02, mu12, B02 = 1, B12 = 1, R = 0)

Arguments

t: Strictly increasing nonnegative time points.
tp00: Healthy-state probabilities.
tp01: Disabled-state probabilities.
delta: Force of interest.
mu02: Healthy-to-deceased intensity function.
mu12: Disabled-to-deceased intensity function.
B02: Benefit on death while healthy.
B12: Benefit on death while disabled.
R: Continuous disability income rate.

Value

A numeric scalar.

Examples

mu01 <- function(t) 0.10 * t + 0.20
mu02 <- function(t) 0.20
mu10 <- function(t) 0.50
mu12 <- function(t) 0.125 * t + 0.20

probs <- tp00_tp01_euler(
  h = 0.10,
  n = 2,
  mu01 = mu01,
  mu02 = mu02,
  mu10 = mu10,
  mu12 = mu12
)

Pbar_trapz_ms(
  t = probs$t,
  tp00 = probs$tp00,
  tp01 = probs$tp01,
  delta = 0.04,
  mu02 = mu02,
  mu12 = mu12,
  B02 = 1000,
  B12 = 1000,
  R = 1000
)
#> [1] 446.9451