The Nature and Causes of Variation in Insurance Policy Yields: Whole Life and Universal Life

James M. Carson and Mark D. Forster

Journal of Insurance Issues, 2000, vol. 23, issue 1, 30-47

Abstract: This study examines policy (Linton) yields of two popular forms of cash value life insurance (whole life and universal life) for the period 1988 to 1998. Several hypotheses and statements by professionals suggest that WL likely would dominate UL in terms of policy yield. However, results indicate that universal life policy yields were significantly higher than whole life policy yields for five-year and ten-year holding periods. In addition, the variation in policy yields is greater than that found in previous research. The analysis provides information on the nature, extent, and causes of variation in policy performance, both within and across policy type. The study’s findings are relevant to consumers, financial service professionals, insurers, and regulators.

Date: 2000
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.insuranceissues.org/PDFs/231CF.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wri:journl:v:23:y:2000:i:1:p:30-47

Access Statistics for this article

Journal of Insurance Issues is currently edited by James Barrese

More articles in Journal of Insurance Issues from Western Risk and Insurance Association
Bibliographic data for series maintained by James Barrese ().