风险与保险原理课件_ch17 购买人寿保险的决策（英文版）（32页）ppt.pdf

Three questions in buying life insurance:

How much should I buy?

What kind should I buy?

From which company should I buy it?

Buy Term and Invest the Difference

1.Question of “how much” comes first, 

may determine “what kind.”

2.The inverse relationship between protection 

and savings in cash value life insurance may force 

the purchase of term insurance to obtain 

adequate death protection.

Protection and Cash Value per $100 Premium

Buy Term and Invest the Difference

1.The choice between term and cash value life insurance 

is usually not a risk management decision, 

it is an investment decision.

2.The choice is not between term and cash 

value life insurance, but between cash value life 

insurance and other investments.

3.In making this choice, cash value life insurance 

should be judged against the same standards 

as other investments.

Life Insurance as an Investment

1.A considerable amount of literature--much of 

which is generated by vendors of competing 

investments--condemns life insurance as an investment.

2.Much of this literature oversimplifies a complex issue.

3.There are some situations in which life insurance 

compares favorably with other investment alternatives.

Life Insurance as an Investment