During the sales process of an insurance product an illustration is used to show a customer the potential benefits and cash values of a policy. Our project was to determine what annual rate of return John Hancock should be using to illustrate their Indexed Universal Life policy at. To accomplish this we built a model for projected stock market returns using the Random Walk and Regime Switching models as a basis. We also layered on certain policy features to see how they affected the annual rate of return.

• This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator

• Yang, Han
• Sokk, Maarja-Liisa

Publisher

• Worcester Polytechnic Institute

Identifier

• E-project-042612-082414

Advisor

• Abraham, Jon P.

Year

• 2012

Sponsor

• John Hancock

Date created

• 2012-04-26

Resource type

• Major Qualifying Project

Major

• Actuarial Mathematics

Rights statement

• In Copyright