Research on the Relationship between Internal Rate of Return of Commercial Pension Insurance and Long-term Pension Security
As a supplement to social security and pension,whether commercial annuity insurance can withstand inflation risks and meet long-term pension needs by combining deterministic main insurance returns with floating universal account returns has been a topic of concern for investors.This article constructs an actuarial model for calculating the minimum cash value of universal life insurance policies at the end of the year based on three different commercial annuity insurance subscription methods in the insurance market,taking into account varying interest rates.The research findings indicate that,regardless of the subscription method chosen,female policyholders experience a higher internal rate of return(IRR)than male policyholders in the early years of holding the annuity insurance.As the policy holding period extends,the gap in internal rates of return gradually narrows,eventually leading to convergence in the policy returns.Furthermore,the earlier the age at which the policy is purchased,the longer the policy holding period,the higher the internal rate of return.Among the three subscription methods,the effectiveness in terms of internal rate of return and resistance to inflation,ranked from highest to lowest,is as follows:universal retirement annuity insurance,lifelong retirement annuity insurance,and maturing annuity insurance.Based on these research conclusions,it is recommended that consumers enhance their awareness and planning regarding the purchase of commercial pension annuity insurance.The government should promote commercial annuity insurance as a supplementary means of retirement.Insurance companies should innovate in their commercial pension annuity insurance products and services,emphasizing the protective functions of pension annuity insurance.
commercial annuity insurancetnternal rate of returnold age security