504 - What is Universal Life?

NAIC Working Group Descriptions

Whole Life

Comment [BJC2]: Permanent insurance is a
term used only by the industry – not by consumer
educators. We would prefer – Life insurance comes
in two basic types: Term and whole life (also
referred to as permanent insurance).

2017/11/15 <No Actual Date, Assuming), Brenda Cude

 

Dynamic

"...completely Dynamic services and policy opportunities for their customers to purchase and to elect a variety of options."

2019/11/09- LIIIWG CC - Michael Lovendusky, ACLI

198x - NAIC Life Insurance Buyer's Guide - Scribe (ACLI) - Universal Life Description

Adjustable Life

...."Universal Life" style Adjustable Life product..... 

-- DAVID R. CARPENTER

1979 - FUTURE TRENDS AND CURRENT DEVELOPMENTS IN INDIVIDUAL LIFE PRODUCTS, Society of Actuaries - 24p

Universal Life

Unlike adjustable life, where a current plan is defined, but is subject to change, a universal life policy at any time has only a "minimum" and a "maximum' plan....

The adoption in 1983 of the Model Regulation for Universal Life provided recognition that these policies could be configured as whole life policies.

1989-1 (p662), NAIC Proceedings

Universal life insurance:  A type of permanent life insurance that allows the insured, after the initial payment, to pay premiums at various times and in varying amounts, subject to certain minimums and maximums. To increase the death benefit, the insurance company usually requires the policyholder to furnish satisfactory evidence of continued good health. Also known as adjustable life insurance.

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Adjustable life insurance: A type of life insurance that allows the policyholder to change the plan of insurance, raise or lower the policy’s face amount, increase or decrease the premium, and lengthen or shorten the protection period.

2017 - GLOSSARY OF INSURANCE-RELATED TERMS, ACLI FACT BOOK

This leads to the second attitude adjustment that is needed.

  • The old distinction between term and permanent is usually not appropriate for an adjustable life policy.
  • In every sense an adjustable life policy should be a permanent policy regardless of what the current static plan may be.
  • Its flexibility means that it can be the only policy a person ever owns even if the initial version corresponds to a ten-year term plan.

1976 - Toward Adjustable Individual Life Products, Walter L. Chapin, Society of Actuaries - 50p