Hi All,
On page 29 of Chapter 9, the answer states that the risk of withdrawals/paid up rates may be lighter than expected if the Co. changes to a structure of lower level commission over the term vs higher initial commission. Can anyone explain why? I can see how the commission may affect the asset share but I'm not sure why this would affect withdrawals or mortality experience.
Best Regards.
On page 29 of Chapter 9, the answer states that the risk of withdrawals/paid up rates may be lighter than expected if the Co. changes to a structure of lower level commission over the term vs higher initial commission. Can anyone explain why? I can see how the commission may affect the asset share but I'm not sure why this would affect withdrawals or mortality experience.
Best Regards.