Actuarial models for pricing disability benefits: Towards a unifying approach

A basic probabilistic multistate structure is defined, which provides the possibility of setting up a systematic set of models for “health insurances” (disability annuities and lump sums, as well as Dread Disease Insurance and Long Term Care annuities). A time-continuous general model is proposed, which allows us to take into consideration a wide range of different policy conditions. Moreover, some particular practical calculation procedures for disability annuities are briefly illustrated and reinterpreted in the framework of multistate modelling.