In Brief
- Many permanent life insurance policies may be underperforming original projections.
- While some of this underperformance can be traced back to the timing and amount of premium payments, or perhaps equity market volatility, much of it stems from an extended period of low interest rates that has impacted insurance carrier general account yields and resulted in declining interest and dividend crediting rates.
- Gradually increasing interest rates going forward may not change this dynamic for many years.
- A review of your life insurance policy can determine whether it offers worthwhile benefits or if it makes sense to modify it or seek alternatives.
If you would like to read more of this article, please download the PDF via the link above.
