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Policy Duration

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Policy Duration
The length of time during which an insurance policy remains in force. Health insurance, for example, may have a policy duration of several months or several years. Many other policies last only one year before renewal. Whole life insurance remains in effect for the remainder of one's life.


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IT will help insurers improve their underwriting by ensuring correct pricing of policies as well as enable them to retain accounts for the entire length of the policy duration by focusing on customer retention strategies.
The investment funds can be chosen from a list of over 10 approved funds and can be switched during the policy duration to alter the strategy.
The graph shows that the number of surrenders at the beginning of the policy duration is substantially higher than the number of deaths, which can be attributed to two effects.
 
 
 
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