re: Whole Life Insurance Lapse Rate

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One way to think about it is to consider myself the average consumer, and the average consumer (80% of them), takes the money out of the WL policy

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So, other people's bad decision impact your decisions/investment?

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gets taxed on a meager 3-4% return

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Where are you getting these return numbers? If you are going to argue its not a good investment based on industry avg returns or something (which I would believe the avg is probably 5% or so), I'll just leave. As I've said in every thread on the subject, 90% of whole life policies out there are complete jokes. There are only a few that are actually good and perform accordingly.

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doesn't get the DB

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Again, how does this decision effect yours?

You are trying to operate in a vacuum where all of these things are linked. The lapse ratio has absolutely no bearing on your ability to keep your policy. You can only look at a policy on an individual basis. The lapse ratio is a company ratio to help with their accounting.