As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Any guarantees are contingent on...
Valuation of equity-linked life insurance contracts with surrender guarantees in a regime-switching rational expectation model We develop a regime-switching rational expectation model, where both the market value of a reference fund and the surrender intensity of a policyholder cha... F Uzelac,A Szi...