Multi-period optimization model for a household, and optimal insurance design

Research output: Contribution to journalArticlepeer-review

Abstract

We discuss an optimization model to obtain an optimal investment and insurance strategy for a household. In this paper, we extend the studies in Hibiki and Komoribayashi (2006). We introduce the following points, and examine the model with numerical examples. 1 We consider cash flow due to a serious disease and involve medical insurance. 2 An optimization model is formulated with term life insurance which variable insurance money is received. 3 We propose a model to decide optimal life and medical insurance money received at each time. 4 Sampling error is examined with 100 kinds of 5,000 sample paths.

Original languageEnglish
Pages (from-to)463-487
Number of pages25
JournalJournal of the Operations Research Society of Japan
Volume50
Issue number4
DOIs
Publication statusPublished - 2007 Dec

Keywords

  • Finance
  • Financial planning
  • Insurance design
  • Investment and insurance strategy
  • Multi-period optimization

ASJC Scopus subject areas

  • Decision Sciences(all)
  • Management Science and Operations Research

Fingerprint Dive into the research topics of 'Multi-period optimization model for a household, and optimal insurance design'. Together they form a unique fingerprint.

Cite this