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1. Purchasing life insurance to reach a bequest goal 2014

   https://ncsu.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwpV3dS8MwEA-ygR8PfkzB6ZQIvpatTdMPHIMhykQUH_Q5NF9uMjdZt__fu7bZRFQU31LSliR3yd0lv_yOkHMwAirlOvasVRCgmCz1Mph0ngqk4sayxJR3q1abOeU97vyLI_wCijWa5K_oDym8reeHBdsmMnzWwfxEnRqp929uB_fLBRiUKnaU3lGUxBWA56d_fWeVPq3PhdG53iHCNbfAmmCGg4-g-3ZBdFiwWzhSxz92bZdsV_4o7ZcKtEfWzKRB1h0cvkE23M1lKG_dLTle832SPGAeqQz3Gmh32BuPrKGIbMdMHabbHvbofEpnCNakGZWm6B99nmbjA_J0ffV4OfCqPAyeClM2hxAz6diQaRUHRoM7Y4IkkRljEHuxTEVhpE1suZRcSZAzFJWOYs2s5jI2vk3YIaEslqnPuAXbmIYy0hB4BxDb6Qj9B8l5k_hOAOKt5NkQDoD2IlajJHCURAcPzVmTXDhJicpfKP0AAeP8i69bTriimre5gGiWQQTJsfpsWQ0zDo9RsomZLuAdcOpCBN_yo3814Jhs4lMJWGuR2ny2MCekhlp0Wqn0O34Q934

   Bayraktar, Erhan; Promislow, S. David; Young, Virginia R.

   Insurance, Mathematics & Economics, Vol. 58, pp. 204 - 216.

   We determine how an individual can use life insurance to meet a bequest goal. We assume that the individual’s consumption is met by an income from a job, pension, life annuity, or Social Security. ... Read more

   We determine how an individual can use life insurance to meet a bequest goal. We assume that the individual’s consumption is met by an income from a job, pension, life annuity, or Social Security. Then, we consider the wealth that the individual wants to devote towards heirs (separate from any wealth related to the afore-mentioned income) and find the optimal strategy for buying life insurance to maximize the probability of reaching a given bequest goal. We consider life insurance purchased by a single premium, with and without cash value available. We also consider irreversible and reversible life insurance purchased by a continuously paid premium; one can view the latter as (instantaneous) term life insurance. Read less

   Journal Article  |  Full Text Online

2. Purchasing Term Life Insurance to Reach a Bequest Goal: Time-Dependent Case 2015

   https://ncsu.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwpV1LT8MwDI5gSMCFt8RjoBy4lrVN06xoGmLAAIkDQiDgVKVNIpBgG6z7_9hpwtgFDlx6SNqqlR37i2P7I-QQnECZcSUCY0rYoGiZBRIWXVDGRcm1YW1d11ZNgzl1NiHWwjj5erNobbUalhgmbyFXd5ICHg5PRh8BEkfhAatj0ZgnC1EMWAZUWjw-fx8kxImlJIxCTLKEeV_E0w5bOIZDmN_FsfgckI6YcU8zzUtnjXXsPFB_lbz7b7eJJ0h38DMDv2W7HtpWF77D47_-c42sOKhKT2vdWidzerBBFn2m_AZZ8kXN401yd4ukUhIDD_QejD3tvHRvXo2m14PxBLk7dKf10qXVkN5h-iaVtKftJ9HLoXw7pliJEpw7Qt6KnoFv3SIP_Yv7s6vA0TUEJcDAKshC1pYyTARToJ5ZmigBaNEYxiMVlypiqdGMCwUQULRVoVSZyrgwYHGVTnkh2DahTBRZxLiBO7KkSBXsz2PYAqoUYUbB-Q458uLJR3U7jjxyXU69PHOUZ-7kuUOyn0LMKxsHMTVpSc7-eLbp5ZO7lT3Op8LZ_X16jyzjy2xqL2uSRvU50fukgXpxYHUUr0-9L6KP7Io

   Bayraktar, Erhan; Promislow, S. David; Young, Virginia R.

   North American Actuarial Journal, Vol. 19, Issue 3, pp. 224 - 236.

   We consider the problem of how an individual can use term life insurance to maximize the probability of reaching a given bequest goal, an important problem in financial planning. We assume that the... Read more

   We consider the problem of how an individual can use term life insurance to maximize the probability of reaching a given bequest goal, an important problem in financial planning. We assume that the individual buys instantaneous term life insurance with a premium payable continuously. We allow the force of mortality to vary with time, which, as we show, greatly complicates the problem. Read less

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3. Hedging life insurance with pure endowments 2007

   https://ncsu.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwpV1LS8NAEB6kBR8H32B95uA1mGbzWhRBilIRPel5SXYntGIfNK3iv3cmydYeVBQPmwSWhM3u7M77G4BTYgJahiZ281yTgoKpdFPadK72Mx1iLhKscqs-jTlVHnfxhQu_DMXqD4sBy0N6VHsPGHaQzt0msZ_Ia0Dz6vau-zA_gImoYgvpHUVJXAfw_PSt77jSgtTZnOAYdYUkVTKfmw1QdthlzAlXOlgMvj8rAQ9LlAsL7vjHX9yE9Vouda4qQtqCJRxuw7INi9-GFZvBTM9r93Os12IH_C4arnTkXPQuX_o5OhzezuU68OKsd-mwodcZzybo4NCM3sqMul14url-7HTduhKDq0lCmroxEgsTcYyJMEaWGGu-iTMRZKQQ-Z42QS5lGiEbVDUdvSTX-UmujcxSg1KGYg8cEWeyLcKcuKMMssiQ6u2TdmciliCyMGxB2y6BGldIG8qGoD2rz_nhwpmR8tht7rfg3K6VqiWGShJQNMO_ePvALq-qd25B_QlpkEJ4LTiZ99KWYz9KOsTRrFAiCtn4QyPulDQxHy4i8hQPUvWqRBp4dHmnxuZguvWpCWpj7hOhCoKA6Gew_69_OIDVytrMIZiH0JhOZngEDSbB43pffAAoyw2F

   Bayraktar, Erhan; Young, Virginia R.

   Insurance, Mathematics & Economics, Vol. 40, Issue 3, pp. 435 - 444.

   We extend the work of Milevsky et al., [Milevsky, M.A., Promislow, S.D., Young, V.R., 2005. Financial valuation of mortality risk via the instantaneous Sharpe ratio (preprint)] and Young, [Young, V... Read more

   We extend the work of Milevsky et al., [Milevsky, M.A., Promislow, S.D., Young, V.R., 2005. Financial valuation of mortality risk via the instantaneous Sharpe ratio (preprint)] and Young, [Young, V.R., 2006. Pricing life insurance under stochastic mortality via the instantaneous Sharpe ratio (preprint)] by pricing life insurance and pure endowments together. We assume that the company issuing the life insurance and pure endowment contracts requires compensation for their mortality risk in the form of a pre-specified instantaneous Sharpe ratio. We show that the price P m , n for m life insurances and n pure endowments is less than the sum of the price P m , 0 for m life insurances and the price P 0 , n for n pure endowments. Thereby, pure endowment contracts serve as a hedge against the (stochastic) mortality risk inherent in life insurance, and vice versa. Read less

   Journal Article  |  Full Text Online

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