maxherr
Expert
- 67
This may only be accurate as long as the no-lapse guarantee is not lost. If the policyowner fails to pay sufficient premiums (i.e., sum of planned premiums x # months contract has been in effect -- which works to the client's advantage if they max-fund the contract (or at least pay more than the planned premium) in the early years) or, worse, takes some money out of the cash accumulation, which, in most contracts, is clearly articulated as automatic termination of the no-lapse guarantee.And since the NAAR doesn't change (when implemented correctly) or can even be reduced, the "rising cost of insurance" is pretty minor
Once the no-lapse guarantee is lost, the annual rising COI sleeping dragon rears its ugly head.