What happens to future premiums if death claims are lower than originally expected in an Adjustable Whole Life policy?

In the context of an Adjustable Whole Life policy, if death claims are lower than originally expected, it typically indicates that the insurer's risk assessment was conservative or that mortality rates are better than anticipated. In such cases, insurance companies may be able to reduce the future premiums charged to policyholders.

This happens as the insurer needs to collect less in premiums to cover their liabilities for death claims. The policy is designed to be flexible, allowing for adjustments based on the actual experience of claims versus the expected claims. If the mortality experience improves, insurers can pass these cost savings back to policyholders, resulting in a decrease in future premiums.

The other options reflect scenarios that do not align with the expected outcomes based on lower-than-expected claims. For instance, increasing premiums implies a need to cover higher-than-anticipated risks, which is not the case here. Unchanged premiums might suggest stability in claims without acknowledgment of their improvement, and resetting to original amounts does not capture the dynamic nature of the policy where adjustments are based on actual performance.