What types of life insurance policies are not included in the portfolios?
Any policy where the escalation in annual premiums to be paid between the date of purchase and the insured’s average life expectancy make it uneconomic to buy and hold the policy. These are usually term or universal life policies that were designed to have low premiums (teaser rates) in the initial years and rapidly accelerating annual premiums in later years. After analysis by the policyowner’s financial professionals, these policies are usually surrendered back to the insurance company for whatever value can be salvaged.
