Exercise 8.1 An insurer prices disability income insurance using the model in Figure 8.4. A certain policy provides an income while disabled, a death benefit of $100000 immediately on death (from either live state), and includes a 'bonus' of $10000 at the end of the policy term should the policyholder not make any claim during the policy term. For a policy with a 10-vear term issued to a life aged 50, write down expressions involving transition intensities and probabilities for the EPV at force of interest 8 per year of the death and bonus benefits., Multiple state models [ealthy Sick Dead Figure 8.4The disability income insurance model Exercise 8.1 An insurer prices disability income insurance using the model in Figure 8.4. A certain policy provides an income while disabled, a death benefit of $100000 immediately on death (from either live state), and includes a 'bonus' of $10000 at the end of the policy term should the policyholder not make any claim during the policy term. For a policy with a 10-vear term issued to a life aged 50, write down expressions involving transition intensities and probabilities for the EPV at force of interest 8 per year of the death and bonus benefits., Multiple state models [ealthy Sick Dead Figure 8.4The disability income insurance model