Interest sensitive life
| Cash Value Policies: Interest Sensitive Whole Life |
| Description |
Premiums |
Cash Value |
Advantages |
Disadvantages |
Uses |
| Like whole life, except that interest paid on the cash value is pegged to a specified financial measure (such as stock index or specified financial instrument) |
Level premiums |
Build-up influenced by interest credited on policy's cash value; Participating policies may have additional build-up |
Forced savings; Fixed premiums; Income tax advantages; Some protection against inflation |
Rates higher than Ordinary Life; Investment return usually marginal (but better in times of high interest rates) |
Conservative buyers wanting guarantees of Ordinary Life, but with some inflation protection |
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