- 著者
-
HIROYUKI CHUMA
- 出版者
- JAPANESE ECONOMIC ASSOCIATION
- 雑誌
- The Economic Studies Quarterly (ISSN:0557109X)
- 巻号頁・発行日
- vol.41, no.4, pp.317-335, 1990-12-20 (Released:2007-10-19)
- 参考文献数
- 18
If policyholders surrender their level-premium permanent life insurance contracts in favor of a “buy term and invest the cash value by themselves” proposal, would they be better off? In response to such a standing question in life insurance literature, so-called “separatists” recommend that saving and protection elements of life contracts should be separated. Their argument is based on the observation that: (a) level-premium life insurance overcharges the policyholders and (b) an individual can invest his life insurance savings more wisely than can the life insurance company. Against such a recommendation, however, most of life insurance specialists stoutly maintain the view: People can effectively preserve their life protection only when the saving feature is combined with the protection feature. The purpose of this paper is to offer a through economic analysis on these conflicting doctrines.