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Path: utzoo!watmath!clyde!cbosgd!ihnp4!cord!rib
From: rib@cord.UUCP (RI Block)
Newsgroups: net.invest
Subject: What is the low loan rate on Life Insurance worth?
Message-ID: <177@cord.UUCP>
Date: Sun, 28-Apr-85 21:44:15 EDT
Article-I.D.: cord.177
Posted: Sun Apr 28 21:44:15 1985
Date-Received: Mon, 29-Apr-85 04:39:25 EDT
Organization: AT&T Bell Laboratories, Piscataway
Lines: 14

MONY has offered to modify the terms of its whole life policies
on existing contracts as follows:

In exchange for giving up the fixed rate (5% in my case) specified
by the policy for loans against the cash value, the way in
which dividends are calculated would be changed so that expected
(insurance companies don't promise) dividends would increase by
greater than 75%.

Cental to evaluating the proposal is an estimation of what the
expected benefit of the fixed rate (versus the current variable rate
of 12.5% or ?? in the future).

Any ideas?  Please no flames about what am I doing with whole life.