Current Assumptions


Definition of "Current assumptions"

The AM  Group real estate agent
The AM Group, Real Estate Agent Keller Williams Port Saint Lucie

Basis for calculating life insurance premiums and benefits using current interest and mortality rates, rather than historic rates. Current assumptions are critical to interest-sensitive products such as Universal Life. When interest rates are high, benefits projections (such as cash values) are high. When interest rates are low, these projections are not as alluring. The thesis of current-assumption life insurance products is that policy owner earnings should reflect current market conditions.

 

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