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Stock Slump Has Dealt Blow to Life Insurance Policies.
- Article from:
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Knight Ridder/Tribune Business News
- Article date:
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October 7, 2001
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Copyright informationCOPYRIGHT 2001 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Richard Newman, The Record, Hackensack, N.J. Knight Ridder/Tribune Business News
Oct. 7--Watch out, you owners of life insurance policies that are linked to stock market funds. The market slump may not only trim your retirement savings but also cause your life insurance to lapse.
It's true, at least for the many holders of so-called variable life policies who opted to let earnings from stock fund investments cover premium payments.
Over the past year and a half, those earnings have dwindled and, in some cases, policyholders are learning they must quickly come up with unpaid past premiums to keep death benefit guarantees.
Jim Hunt, a retired actuary who ...