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Robert,
Of course you are correct.
I know, and should have said "the insurance industry".
Thanks for pointing it out to me.
About YOUR comment that says "whole life policies never pay a death benefit either".
I looked searched for the percentage of WL policies that paid the death benefit and can't find a source. Do you have one? "Most" is relative but I have a hunch the percentage isn't very high.
tinman
I said "most" whole life policies never pay a death benefit. Obviously more whole life policies pay death benefits than term. I have two permanent policies that will pay death benefits, because that's why I bought them.
Back to the numbers. Several years ago a life insurance company executive told me they experience about a 5% per annum lapse ratio. I told him that based upon the rule of 72, that means half the policies are lapsed in 14 years. He agreed. And then another half of the remaining policies would be gone in 28 years. Right again. So after about 30 years, only about 25% of the policies are still in force, and they continue to drop.
Most policies lapse for planned reasons. I'll catch that in response to the posting that followed yours.