IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The Demand for Enhanced Annuities

Listed author(s):
  • Schuhmacher, Petra
Registered author(s):

    In enhanced annuities, the annuity payment depends on one's state of health at some contracted date while in "standard annuities", it does not. The focus of this paper is on an annuity market where "standard" and enhanced annuities areoffered simultaneously. When all insured know equally well on their future health status either enhanced annuities drive standard annuities out of the market or vice versa. Both annuity types can exist simultaneously when the insured know varying exactly on their risk type. In the case of the existence of such an "interior" solution, its is derived that this solution must be unique in the case of risk averse insured and that it Pareto-dominates the corner solution. Finally, it is shown that in all cases where at least part of the insured buy enhanced annuities social welfare is reduced.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by University of Munich, Munich School of Management in its series Discussion Papers in Business Administration with number 7954.

    in new window

    Date of creation: 31 Nov 2008
    Handle: RePEc:lmu:msmdpa:7954
    Contact details of provider: Postal:
    Ludwigstr. 28,80539 Munich, Germany

    Phone: +49-(0)89-2180-3888
    Fax: +49-(0)89-344054
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:lmu:msmdpa:7954. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Debbie Claassen)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.