Table 1: Comparison of results, low earnings profile ( , ).

Expected lifetime utility for

Initial wealth ($)No insurance over lifetimeIOOF insurance for first year onlyIOOF insurance for first 3 years onlyIOOF
insurance for first 5 years only
IOOF
insurance for first 7 years only
IOOF
insurance for 40 years
AALL insurance
(4.0% premium)
AALL insurance
(2.6% premium)
AALL insurance
(2.1% premium)

0−∞6.04846.04876.04886.04886.04816.02066.04206.0495
23.92846.04886.04916.04916.04916.04846.02096.04236.0497
46.01296.04926.04946.04956.04956.04886.02126.04256.0500
66.04206.04956.04986.04986.04986.04916.02156.04286.0503
86.04586.04996.05016.05016.05016.04956.02186.04316.0505
106.04736.05026.05046.05056.05056.04986.02206.04336.0508
226.05136.05216.05226.05236.05236.05166.02366.04496.0523
446.05526.05536.05536.05536.05536.05466.02646.04756.0550
466.05556.05556.05556.05556.05556.05486.02666.04786.0552
486.05586.05586.05586.05586.05586.05516.02696.04806.0554
506.05616.05616.05606.05606.05606.05546.02716.04836.0557
1206.06516.06486.06436.06426.06426.06356.03516.05606.0634

Note: values in boldface show the highest expected lifetime utility for a given value of initial wealth across the given insurance options.