What Is Current Assumption Whole Insurance?

WHAT IS CURRENT ASSUMPTION WHOLE LIFE INSURANCE?

This type of policy is abbreviated as CAWL where the premiums vary depending on your actual and anticipated mortality rate, expense and investment earnings. If the assumptions of your insurance company are correct and the policy performs as expected, your premiums decrease, or your cash value increases, or your death benefit increases. Yet the opposite will occur if your the assumptions of your insurance company are incorrect.

These policies are usually nonparticipating where the maximum premium based on maximum mortality and expense charges as well as minimum interest rate.