We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
College Education Planning: Indexed Universal Life Insurance versus 529 College Saving Plans.
- Authors
Zhixin Wu; Lei Liang
- Abstract
This study compared the performance of indexed universal life (IUL) insurance policies with 529 college saving plans in college education planning by Monte-Carlo simulations and sensitivity analysis. The IUL policies showed lower return and risk than the allstock 529 portfolios but higher return and risk than the typical age-based 529 portfolios. The expected family contribution (EFC) impact should be considered in the decision-making process. All key market variables were modeled as correlated stochastic processes in the simulation. Important actuarial assumptions and tax-related issues driving the performance of the IUL and 529 investments were thoroughly analyzed. The study reported how these factors affected the performance of two alternative funding solutions.
- Subjects
529 plans; STOCK exchanges; INVESTMENTS; STOCKS (Finance); RATE of return
- Publication
Journal of Financial Service Professionals, 2019, Vol 73, Issue 2, p47
- ISSN
1537-1816
- Publication type
Article