What Is Current Assumption Whole Life Insurance?

Current assumption whole life insurance is a type of life insurance policy that is going to have a fluctuating premium payment. Here are the basics of the current assumption whole life insurance policy and how it works.

Current Assumption Whole Life Insurance

One of the traditional features of whole life insurance is that your premiums are going to remain the same from the time you buy the purchase until you die. However, with current assumption whole life insurance, you are going to find that your premiums are actually going to go up and down. Sometimes this can work in your favor and other times it can go against you.

Why Premiums Fluctuate

The premiums for current assumption whole life insurance are going to depend on a few different things. For one thing, the premiums will be directly affected by interest rates in the market. If the investments from the whole life insurance portfolio are going well, this means that you are not going to have to pay as much in insurance premiums. If the investments are going poorly, you are going to have to pay more to make up the difference. The number of mortalities during a given time period are going to change your premium also.

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