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I've never seen or heard of a WL policy lapsing for any reason other than the premiums being discontinued. This is even written into the contract as to what causes a policy to terminate. If there is any WL contract that says it can lapse for any reason other than the non payment of premiums, I'd like to see it.
An insurance company can "guess" all they want, but if it's not in the contract the company is SOL. Remember that policies are "contracts of adhesion" which means that once the client gets the policy the company is stuck with it.
Correct. I'm not saying that the WL will lapse, but if the company guesses bad enough they have the risk of going out of business. I was simply saying that the WL isn't exact, it's a good guess. There's less guessing from the insurance company end on UL, more on the client end. Even more so with VUL. So why would clients go with UL? Because of the benefits that they get.