An analysis of the whole life insurance policy in confronting the risk of inflation : an honors thesis ([HONRS] 499)

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dc.contributor.advisor Williams, Numan A. en_US Scheidler, John B. en_US 2011-06-06T19:21:25Z 2011-06-06T19:21:25Z 1976 en_US 1976
dc.identifier.other A-9 en_US
dc.description.abstract The study proposed the variable life insurance policy as an alternative method of formulating thewhole life policy to effectively hedge against inflation. The discussion ended with a report of the consequences of increased government regulation in the whole life insurance industry.Conclusions Based on the study, the following conclusions should be considered:1) The whole life insurance policy, because it involves a fixed dollar benefit accruing over a long period of time, is greatly affected by inflationary forces. Consideration should be given to ascertaining either methods of manipulating the present whole life policy to meet the inflation risk or to develop an alternative policy formulation which would effectively hedge against inflation.2) The whole life policy is characterized by its complexity and flexibility. While the complexity exposes it to the adverse effects of inflation more readily and substantially than other types of life insurance coverage, the flexibility enables it to be manipulated by the policyholder in several ways to provide an adequate response to the risk of inflation. A policyholder should take advantage of his policy loan option by investing the borrowed cash reserve in more financially profitable instruments. He should purchase his coverage from a mutual life insurance company in order that the profits earned by the company will be returned to him and not to a profit-seeking stockholder. Also, a policyholder should consider a variable annuity to enable a financially sufficient retirement as well as providing that the proceeds of the policy be handled by a lump sum option to in turn be handled by a banking official.
dc.description.sponsorship Honors College
dc.format.extent 1 v. : ill. ; 28 cm. + 1 policy. en_US
dc.source Virtual Press en_US
dc.subject.lcsh Business. en_US
dc.title An analysis of the whole life insurance policy in confronting the risk of inflation : an honors thesis ([HONRS] 499) en_US
dc.type Undergraduate senior honors thesis Thesis (B.?.)
dc.identifier.cardcat-url en_US

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  • Undergraduate Honors Theses [5928]
    Honors theses submitted to the Honors College by Ball State University undergraduate students in partial fulfillment of degree requirements.

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