What Is Current Assumption Life Insurance?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaCurrent assumption universal life insurance is a permanent cash value policy that offers death benefit protection to your beneficiaries. It is a flexible contract where the policy owner can modify the death benefit, the premium or both. It has current and guaranteed interest rate crediting as well as current and guaranteed cost of insurance charges.Answered on August 22, 2013flag this answer
4470 POINTSview profileBrandon RobertsOwner, The Insurance Pro Blog,Current assumption life insurance is a universal life insurance that pays an interest rate on the reserve or cash surrender value that is determined each year by the insurer and is based on the investment performance of the insurer's general account. The alternatives to this are Variable Universal Life Insurance where return on the cash value is typically determined by the investment performance of insurance industry mutual fund equivalents known as sub-accounts and Indexed Universal Life Insurance where the return on the cash value is interest determined by the percentage change of a chosen index over a certain period of time.Answered on August 22, 2013flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.Besides current assumption Universal Life as explained by others on this page, current assumption Whole Life insurance also pays policyholders an added benefit if the policy performs according to, or better than, the assumptions upon which the policy was based. The benefit can be in the form of increased cash value or a decrease in premiums. If the policy does not perform up to current assumptions, the premiums can increase.Answered on August 23, 2013flag this answer
1976 POINTSview profileRonald HinchRegional Marketing Director, Capital Choice Financial Group,Wow! A complicated name like that is usually a clue that it is not very client friendly. Current Assumption life insurance is just another universal life insurance policy that offers flexible premiums with an adjustable death benefit. Now, why would you need those things. The simpler and cheaper way to get the most insurance coverage for the money is by purchasing a level term policy at a much cheaper rate, now what you have and invest the difference for the future. Now, that's a plan that works!Answered on April 28, 2016flag this answer
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