Policy Mechanics – Cash Flow

IRR – Internal Rate of Return 2021 – AP – A Study of Life Internal Rate of Return, by Roenganan, Sorrawee & Misiran, Masnita & Phewchean, Nattakorn. (2021). A Study of Life Internal Rate of Return. WSEAS TRANSACTIONS ON MATHEMATICS. 20. 122-133 – [link]

Protection Period Coverage Period

Volatility Volatility – Walker v LSW I think you really have to make sure that people understand volatility, whether you solve for a policy blowing up or values being halved. I think you have to catch people’s attention, and that is all to the good. — George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC…

Front-end Loads (p10) – Claude Y. Pauquin: Another thought that I had on the front-end load is that “what is good for the goose is good for the gander. If the SEC successfully attacks the principle of front-end load in mutual funds, it might also destroy the marketing approach of the life insurance business, especially…

BGA – Benefit Generating Account This creature called universal life has evolved from a combination of term insurance and a flexible premium annuity to a range of differing products with various design features. Common to any of these variations is the fact that future cash values cannot be determined completely at issue. Cash values (and…

Q: Should A Life Insurance Policy Be Split? – SIV/CIV High early cash value policies, “premium endowments,” and other policies which overemphasize the cash-value buildup have been around for years. Recently, however, some state insurance departments have been taking a closer look at these policies. At least one state has gone so far as to…

Q: Who Can Explain How Life Insurance Policies Work? Academics 2018 1118 – No. 294: Universal Life Policies—a Disaster for Life Insurance Companies and Their Policyholders, by Joseph Belth – [link] Detailed discussions of the history and operation of universal life may be found in college-level insurance textbooks. See, for example, pages 70-76 in the 15th edition…

Elements In my experience very smart people don’t really know what all the components mean. I mean I feel like it does lead to confusion. So, I think if you can refer to the eventual illustration and just show the cash value. — Teresa Winer (GA) 2019 0917, NAIC – LIIIWG – Life Insurance Illustrations Working Group,…

BGF – Benefit Generating Function BGA – Benefit Generating Account BGF – Benefit Generating Function Premium Calculation One thing to keep in mind is that you can take a traditional whole life policy and determine an underlying benefit generating function, because the cash values are simply there. You can fix one item and say, “We…