Not exact matches
Policyholders face a similar problem when they are deciding whether to keep or
drop a policy, and it can lead them to view a
life settlement as their most attractive option, even in a buyer's market.
Because the dividends earned on the permanent
life insurance are based on national interest rates, the
policyholder could be on the hook if rates
drop or term prices go up.
Then, over time, there are some
life insurance
policyholders who will
drop their policies while there are others that are in poor health who will keep theirs.
For example, if they had $ 500 million in policies that were lapsed because the
policyholders didn't pay their premiums, the amount of «in force
life insurance» would
drop to $ 1.5 billion.