à¤िडियो हेर्न तलको बक्स à¤ित्र क्लिक गर्नुहोस
Fifty years ago, most life insurance policies
sold were guaranteed and offered by mutual fund companies. Choices were limited
to term, endowment or whole life policies. It was simple, you paid a high, set
premium and the insurance company guaranteed the death benefit. All of that
changed in the 1980s. Interest rates soared, and policy owners surrendered
their coverage to invest the cash value in higher interest paying non-insurance
products. To compete, insurers began offering interest-sensitive non-guaranteed
policies.
Guaranteed versus Non-Guaranteed Policies
Today, companies offer a broad range of guaranteed and
non-guaranteed life insurance policies. A guaranteed policy is one in which the
insurer assumes all the risk and contractually guarantees the death benefit in
exchange for a set premium payment. If investments underperform or expenses go
up, the insurer has to absorb the loss. With a non-guaranteed policy the owner,
in exchange for a lower premium and possibly better return, is assuming much of
the investment risk as well as giving the insurer the right to increase policy
fees. If things don’t work out as planned, the policy owner has to absorb the
cost and pay a higher 
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