Universal/Variable Life Insurance versus Similar Unbundled Investment Strategies
提供了一种方法，用于计算万能/变额人寿保险与可比投资策略在1986年税收改革法案下的相对税后收益。研究发现，这类保单通常需持有至少八年才能提供优于可比投资策略的回报。
Universal/variable life insurance combines the tax advantages of cash value life insurance wvith investment in money market, hond, or equity funds. lespite expense loatinigs and( stirsunder charges o( n univers.tl/variable life policics. tIhis tax treat ment often generates a gi-mear aIter tax retuirn than alternativc investm;ient strategies. This paper provi(les a method for calculating relative after tax proceeds for universal/varinble life and comparable investment strategies based on the provisions of the Tax Reform Act of 1986. In general, uaniversal/variabic life insurance policies inust he kept ini force for at least eight years before providing a greater return than comparable investmsenlt strategies.