Life Insurance in Force

Definition - What does Life Insurance in Force mean?

Life insurance in force is an industry term that refers to the value of all the policies that an insurance company has sold and the benefits of which they are obliged to cover.

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 all of the policies sold but also the dividends distributed to its policyholders. It does not, however, include future payments and unpaid premiums.

To illustrate, if a company has sold $2,000,000 worth of policies and has given $100,000 as dividends, then its life insurance in force totals $2,100,000. Likewise, if a person has bought and paid life insurance polices worth $500,000, then that person's life insurance in force is also $500,000.

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