HullRMFI2ndEdCh03金融风险管理.pptVIP

Types of Life Insurance (pages 40-43) Term life Whole life Variable life Universal life Endowment life Group life Risk Management and Financial Institutions 2e, Chapter 3, Copyright ? John C. Hull 2009 * Cost of Whole Life Insurance Compared with Annual Premium (Figure 3.1) Risk Management and Financial Institutions 2e, Chapter 3, Copyright ? John C. Hull 2009 * Cost per year Annual Premium Surplus Investment of Surplus Some contracts allow the policyholder to choose how the surplus is invested There are tax deferral advantages compared with a regular investment because no tax is paid until