Before revision:  Using publicly available data, we provide estimation procedures for model parameters including classical approaches, as well as Markov chain Monte Carlo methods. We conclude with a real world example using Australian death data . In particular, our model allows stress testing and, therefore, offers insight into how certain health scenarios influence annuity payments of an insurer. Such scenarios may include outbreaks of epidemics, improvement in health treatment, or development of better medication. Further applications of our model include modelling of stochastic life tables with corresponding forecasts of death probabilities and demographic changes .
After revision:  Numerous examples, including an application to partial internal models under Solvency II, using Austrian and Australian data are shown .