Current Assumption Whole Life Insurance

Variation of ordinary life insurance under which current mortality experience and investment earnings are credited to the insurance policy either through the cash value account and/or the premium structure (in a stock company) or the dividend structure (in a mutual company). Regardless of whether a company is stock or mutual, the policy has these characteristics:

1. premiums are subject to change based on the experience (mortality, expenses, investment) of the company. The policyowner does notexercise any control over the changes.
2. a policyowner can use the cash value to make loans just as with traditional ordinary life insurance.
3. a minimum amount of cash value is guaranteed, just as with traditional ordinary life insurance.
4. the death benefit does not fluctuate.