Archive for January, 2009

Life Insurance Profit

Friday, January 30th, 2009

A recap of the (very little published) life insurance financial profit mechanism.. Simply stated.
1) Life insurance requires ongoing premiums from policy owners to keep policies in force.
2) Life insurance companies have obligation to pay death benefits upon maturity = BIG LIABILITY.
3) Weak financial market = difficult to pay ongoing premiums = policy lapse rate goes up.
4) Policy lapse rate [...]

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