If actual interest earned is lower than expected in an Adjustable Whole Life policy, what would its impact be on future premiums?

In an Adjustable Whole Life policy, the premiums are often influenced by the company's experience with actual interest rates earned on the invested funds. If the actual interest earned falls below the anticipated or expected rate, the insurer may need to adjust its pricing to ensure that it can meet future obligations, such as paying out death benefits and maintaining cash value growth.

This situation arises because the performance of the investments held in the policy impacts the overall financial health of the insurance product. Lower interest earnings typically result in insufficient funds to support the policy's guarantees and benefits as originally structured. Consequently, to make up for the deficit created by lower investment returns, the insurer may need to increase future premiums. This adjustment is necessary to ensure that the policy remains viable and that the insurer can fulfill its commitments to policyholders.

Thus, when actual interest earned is less than expected, it generally leads to an increase in future premiums to maintain the policy's financial soundness.