| Without insurance | With insurance |
Period 1 | U(c*1+a0(r0−i0)) | U(c*1+a0(r0−i0)−B) |
Period 2 | EU(c*2+a1(r1−i1)) | EU(c*2+a1(r1−i1)+z) |
AS | U(c*1+a0(r0−i0))+δEU(c*2+a1(r1−i1)) | U(c*1+a0(r0−i0)−B)+δEU(c*2+a1(r1−i1)+z) |