This can happen due to a change in risk class during the underwriting process. For example, when the employee we thought was a nonsmoker turns out to be a smoker, or when the policy is rated. In these cases, a different amount of insurance is purchased by the designed premium. However, it is important to let us know when this occurs, since a different amount of coverage also can mean a different amount of insurance cash value. In turn, that means that the non-insurance funding also must change from what was proposed. Hence, it is important for us to refine our calculations whenever a policy is issued differently from what we assumed in our proposal.
Posted in: Plan Funding
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