Permanent life insurance pricing relies on lapse-supported assumptions, where expected policy lapses subsidize costs for those who keep coverage. Early lapses cause losses, but mid- to late-term lapses generate profits for insurers. Many policyholders are unaware of this mechanism, including unclaimed or reduced-benefit policies. Regulatory changes now require insurers to hold capital against lower lapse rates, reducing the pricing advantage of lapse assumptions. Participating whole life products are less dependent on lapses for profitability.