What Is Another Name For Interest Sensitive Whole Life Insurance?

What Is Another Name For Interest Sensitive Whole Life Insurance? An alternate name for interest sensitive whole life insurance is cash value life insurance. This type of life insurance policy builds a cash value account that grows over time. The cash value can be used to pay premiums, borrow money, or receive a death benefit payout.

What is the catch with whole life insurance? The catch with whole life insurance is that it is more expensive than term life insurance.

What life insurance policy is interest sensitive? A life insurance policy that is interest sensitive will have the premiums increase or decrease in value based on the current interest rates. The higher the interest rates, the more the premiums will increase. The lower the interest rates, the less the premiums will increase.

What are the two types of whole life insurance? There are two types of whole life insurance: participating and non-participating. Participating policies offer dividends to the policyholder, while non-participating policies do not.


Frequently Asked Questions

What Are The 2 Main Differences Between Whole Life Insurance And Term Life Insurance?

The main difference between whole life insurance and term life insurance is that whole life insurance is a permanent policy, while term life insurance is only in effect for a certain period of time. The other main difference is that whole life insurance policies have a cash value that builds up over time, while term life insurance policies do not.

Is Variable Life Insurance Interest Sensitive?

Variable life insurance is not interest sensitive. The cash values of variable life insurance policies are invested in a variety of mutual funds, and the performance of these funds will affect the policy’s cash value. However, the premiums paid for variable life insurance are not affected by changes in interest rates.

What Is Interest Sensitive Whole Life Insurance?

Interest sensitive whole life insurance is a type of whole life insurance that bases premiums and payouts on the current interest rates. This means that the policy’s payout increases or decreases depending on the current interest rates.

What Kind Of Life Insurance Is Interest Sensitive?

A life insurance policy that is interest sensitive will have the premiums increase or decrease as the underlying interest rate changes. This type of policy is typically used to hedge against interest rate risk.

Why Is It Called Whole Life Insurance?

Whole life insurance is called that because it is a type of life insurance policy that covers you for your entire life. It is a permanent policy, as opposed to term life insurance, which only covers you for a certain period of time.

What Is Whole Life Insurance Also Called?

A whole life insurance policy is a type of permanent life insurance. It provides coverage for your entire life, as long as premiums are paid. Whole life policies typically have a higher premium than term life policies, but they also offer a death benefit that is guaranteed to be paid.

Is Variable Life Insurance Interest Sensitive?

Variable life insurance policies are interest sensitive, which means the policy’s death benefit payout and premium payments can go up or down, depending on the performance of the underlying investments.

What Is Another Name For Interest Sensitive Whole Life Insurance Quizlet?

Interest sensitive whole life insurance (ISWL) is another name for modified endowment contract (MEC) life insurance. ISWL policies are whole life policies that have been reclassified as MECs due to the accumulation of excessive interest. This reclassification generally occurs when the policy’s cash value grows to more than the premiums paid in, minus any withdrawals.

What Is The Most Interest Sensitive Life Insurance?

The most interest sensitive life insurance is whole life insurance. This is because the premiums are based on a set schedule and do not rise with age.


There is no definitive answer to this question as the name for interest sensitive whole life insurance can vary depending on the specific policy. However, in general, this type of life insurance policy is designed to provide coverage that is sensitive to changes in interest rates. This means that the death benefit and premiums paid may be more or less depending on current interest rates.

What Is Another Name For Interest Sensitive Whole Life Insurance?

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