insurance. I compare models with deterministic and stochastic hazard rate of death to a model without mortality risk. Mortality … influences optimal controls and wealth evolution. The insurance is used to ensure optimal bequest such that there is no … accidental bequest. In the absence of the insurance, the biggest part of bequest is accidental. …

approximations cause on the valuation of life insurance claims. …

when to acquire life insurance for bequest purposes, We examine two scenarios: one with a fixed bequest amount and another … with a controlled bequest amount, Applying duality theory and addressing free-boundary problems, we analytically solve both … optimal time for life insurance purchase occurs when the agent's wealth surpasses a critical threshold if γ∈(0,1), or (ii …