current assumption whole life insurance

A life insurance policy that has terms linked to the insurance company's earnings or performance as a stock or mutual fund. If lower mortality rates and expenses and/or higher than expected investment returns are experienced, policyholders benefit by an increase in the cash value of the policy, an increase in dividends paid, or a decrease in premiums. The death benefit remains the same regardless of performance. The cash value is also guaranteed not to drop below a predefined minimum.