Life Insurance In Force
What Does Life Insurance In Force Mean?
“Life insurance in force” is an industry term that refers to the total value of all the policies an insurance company has sold, for which it is obligated to provide benefits. It can also refer to the dollar amount of an individual’s life insurance policy.
Insuranceopedia Explains Life Insurance In Force
Calculating life insurance in force includes not only the total value of all policies sold but also the dividends distributed to policyholders. However, it does not account for future payments or unpaid premiums.
For example, if a company has sold $2,000,000 worth of policies and distributed $100,000 in dividends, its life insurance in force totals $2,100,000. Similarly, if a person has purchased and fully paid for life insurance policies worth $500,000, that individual’s life insurance in force is also $500,000.
