What Is Current Assumption Life Insurance? 
Current assumption life insurance is a universal life insurance that pays an interest rate on the reserve or cash surrender value that is determined each year by the insurer and is based on the investment performance of the insurer 's general account . The alternatives to this are Variable Universal Life Insurance where return on the cash value is typically determined by the investment performance of insurance industry mutual fund equivalents known as sub-accounts and Indexed Universal Life Insurance where the return on the cash value is interest determined by the percentage change of a chosen index over a certain period of time . 