Does say taking a regular whole life 100 policy and after say 20 years or so the owner of the policy want to stop paying premiums and convert the policy to reduced paid up insurance....
Since the cash value isn't used to pay premiums it just increases, and while the death benefit is reduced--
Would the Internal Rate of Return on cash value be greater percentage wise from the point of conversion, as now there is no more agent comission being paid.
Since expenses are now less inside the policy---then it stands to reason the percentage of return on money would be greater----even though you were no longer able to stick more money in the policy.
Since the cash value isn't used to pay premiums it just increases, and while the death benefit is reduced--
Would the Internal Rate of Return on cash value be greater percentage wise from the point of conversion, as now there is no more agent comission being paid.
Since expenses are now less inside the policy---then it stands to reason the percentage of return on money would be greater----even though you were no longer able to stick more money in the policy.
