Actuarial model for heart disease

Miocardial infarction is a critical illness that might cause disability or even death. A great amount of money is needed to cover the medical cost of an infarct patient and this will cause a great financial burden to the family. This illness can attack people of all ages, including those who are at productive age. Miocardial infarct insurance can be a long-term guarantee so that individuals are financially protected when they suffered from a infarct or even died. In this paper, infarct insurance was modeled with a three state model: healthy, sick (after infarct) and death. A model for calculating insurance premiums and reserves based on the gender and age of the insured is presented