An insurance product term 10 years that the actuarial interest rate change at the fifth year, can i do that ??

Question

can i make that insurance product ??, how about the actuarial formula ??

Answer 1

There are term policies with non-guaranteed rates about half or two-thirds of the way through the policy.  What you described already exists in spirit.  The guaranteed stuff still tends to be less expensive in practice though.

Answer 2

Hi. I have been in the business for 27 years and I'm not sure what you are asking.

I believe you may want a 10-year term, policy where the rate can readjust to new mortality tables after 5 years. Is that correct?

Some carriers offer 10 year term policies with the first five years guaranteed. Thus, the rate can increase or decrease after five years. Of course, the risk is that the rate will go up.

Take care