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Zur steuerlichen Vorteilhaftigkeit von Kapitallebensversicherungen
[The tax advantages of life insurance policies]

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  • Niemann, Rainer
  • Kiesewetter, Dirk

Abstract

This paper carries out an analysis of individual profitability of life insurance in form of endowment policies which have been very popular in Germany for several decades. We integrate taxes, transaction costs and the possibility of early termination into a model of capital budgeting. The aim of this paper is to model the benefits of endowment policies as a form of saving. In a first step a riskless world with full foresight and a therefore deterministic investment horizon is assumed. After this, the occurrence of a random liquidity need and thus a stochastic investment horizon is analyzed. We discuss different benchmarks and decision criteria to reflect the individual advantages of the endowment insurance as well as the extent of their special tax treatment compared to alternative investments.

Suggested Citation

  • Niemann, Rainer & Kiesewetter, Dirk, 2002. "Zur steuerlichen Vorteilhaftigkeit von Kapitallebensversicherungen [The tax advantages of life insurance policies]," MPRA Paper 27277, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:27277
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    References listed on IDEAS

    as
    1. King, Mervyn A. & Fullerton, Don, 2010. "The Taxation of Income from Capital," National Bureau of Economic Research Books, University of Chicago Press, number 9780226436319, November.
    2. Michael Devereux & Rachel Griffith, 1998. "The taxation of discrete investment choices," IFS Working Papers W98/16, Institute for Fiscal Studies.
    3. Kiesewetter, Dirk, 2001. "Für wen lohnt sich die Riester-Rente?," Tübinger Diskussionsbeiträge 224, University of Tübingen, School of Business and Economics.
    4. Westerheide, Peter, 2001. "Kosten der privaten Altersvorsorge: Private Rentenversicherungen und Fondssparpläne im Vergleich," ZEW Discussion Papers 01-02, ZEW - Leibniz Centre for European Economic Research.
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    Citations

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    Cited by:

    1. Hager, Svenja & Schöbel, Rainer, 2006. "Deriving the dependence structure of portfolio credit derivatives using evolutionary algorithms," Tübinger Diskussionsbeiträge 300, University of Tübingen, School of Business and Economics.
    2. Brassat, Marcel & Kiesewetter, Dirk, 2002. "Steuervorteile durch Versorgungszusagen in Arbeitsverträgen," Tübinger Diskussionsbeiträge 248, University of Tübingen, School of Business and Economics.
    3. Thaut, Michael, 2003. "Die individuelle Vorteilhaftigkeit der privaten Rentenversicherung: Steuervorteile, Lebenserwartung und Stornorisiken," Tübinger Diskussionsbeiträge 264, University of Tübingen, School of Business and Economics.
    4. Rostek, Stefan & Schöbel, Rainer, 2006. "Risk preference based option pricing in a fractional Brownian market," Tübinger Diskussionsbeiträge 299, University of Tübingen, School of Business and Economics.
    5. Pitterle, Ingo A. & Steffen, Dirk, 2004. "Welfare effects of fiscal policy under alternative exchange rate regimes: the role of the scale variable of money demand," MPRA Paper 13047, University Library of Munich, Germany, revised Oct 2004.
    6. Niemann, Rainer & Bachmann, Mark & Knirsch, Deborah, 2002. "Was leisten die Effektivsteuersätze des European Tax Analyzer?," Tübinger Diskussionsbeiträge 241, University of Tübingen, School of Business and Economics.
    7. Hoffmann, Heiko & Krimmer, Pascal, 2004. "Aufkommens- und Verteilungswirkung aktueller Vorschläge zur Reform der Einkommensteuer: Eine vergleichende Analyse anhand eines Simulationsmodells auf Mikrodatenbasis," Discussion Papers 122, Albert-Ludwigs-Universität Freiburg, Institut für Finanzwissenschaft.
    8. Koepke, Nikola & Baten, Joerg, 2005. "The biological standard of living in Europe during the last two millennia," European Review of Economic History, Cambridge University Press, vol. 9(1), pages 61-95, April.
    9. Stadler, Manfred, 2003. "Innovation and growth: The role of labor-force qualification," Tübinger Diskussionsbeiträge 255, University of Tübingen, School of Business and Economics.
    10. Baten, Jörg & Wallusch, Jacek, 2003. "Market integration and disintegration of Poland and Gemany [Germany] in the 18th century," Tübinger Diskussionsbeiträge 268, University of Tübingen, School of Business and Economics.

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    More about this item

    Keywords

    Vorteilhaftigkeitsanalyse für Kapitallebensversicherungen; stochastischer Anlagehorizont; steuerliche Sonderbehandlung;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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