What is another name for interest-sensitive whole life insurance?

Interest-sensitive whole life insurance is also known as current assumption whole life insurance because its premiums and death benefits are based on current interest rates, mortality rates, and expense factors. This type of policy provides the policyholder with more flexibility than traditional whole life insurance, as it allows for adjustments in premium payments and death benefits based on the insurer's current assumptions regarding these factors.

Current assumption whole life policies typically accumulate cash value, which can fluctuate depending on interest rates. The insurer's current assumptions affect the projected growth of this cash value, making it responsive to changes in the economic environment. This characteristic distinguishes it from fixed whole life insurance, which maintains a set premium and guaranteed death benefit throughout the policy's life without any adjustments based on current market conditions.

While variable whole life does provide an investment component that varies with the performance of selected investment options, it does not focus on adjusting based on current assumptions in the same manner as current assumption whole life. Similarly, adjustable life insurance typically refers to policies that allow the policyholder to alter the premium and death benefit levels but does not specifically tie to interest-sensitive features, which is a defining element of current assumption whole life insurance.