Adverse Financial Selection

Definition of "Adverse financial selection"

William Fain real estate agent
William Fain, Real Estate Agent Capital Realty Group River Region

Process in which the policy-holder surrenders the policy when:

  1. cash proceeds can be invested elsewhere at a higher return than that being earned on the cash value within the policy;
  2. economic recession or depression exists and the cash is required to meet other financial obligations. If the policy-holder exercises the CASH SURRENDER VALUE option during these economic circumstances, the company may have to sell assets at a "fire sale" and will have fewer funds to invest at advantageous rates of return.

Need help from a real estate agent?

Buy Sell Rent

I agree to receive FREE real estate advice.

Are you a real estate agent?

Residential Rental Commercial

I agree to receive FREE real estate advice.

Have a question or comment? We're here to help.


*** Your email address will remain confidential.


Popular Insurance Terms

Popular Insurance Questions