If the TA (Term Assurance) becomes a Conventional WP TA then the company would need to increase the mortality assumption in the valuation basis to ensure that some mortality surplus arises regularly. I don't understand why the company would increase the mortality assumption? If the mortality assumption is stronger then the profits would be defered further and so mortality surplus would happen less regularly. Cheers
Do we ever find conventional WP TA in practice (or even in theory)? How would it work? What happens to the bonuses at the end of the term, since there is no maturity benefit?
