Universal Life

Q: How Can Universal Life be Classified? Permanent / Whole / Cash Value / Term / Other Q: Why is Universal Life called Permanent or Whole Life? Maybe Universal Life Shouldn’t be Called Permanent or Whole Life Q: How Else Could Universal Life Be Explained? NAIC Drafting Note: Although highly flexible, Universal Life insurance is…

Universal Life – China …why has the sailing been smooth for mature products similar to universal life insurance abroad, while in China things have been so turbulent? (p57) 2017 0623 – IMF – Strengthening Financial and Exchange Rate Frameworks – 230p – [Link to Download page -> Conference ebook] Until 1999, there was not any…

Universal Life – NAIC 1980’s – Task Force on Life Insurance Disclosure System – LIDS – NAIC ? – 1982 – ? – NAIC Proc. – Funded Plans of Life Insurance (Universal Life) and Annuities – NAIC Universal Life and Related Plans of Life Insurance and Annuities – NAIC 1982-1989 – Life Cost Disclosure Task Force…

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…

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…

Universal Life – States California Florida Kansas Texas California Universal Life: The policy can also be structured to operate like term insurance. California – Life Insurance Guide (Revised March 2018) – insurance.ca.gov/01-consumers/105-type/95-guides/07-life/life-ins-guide.cfm Florida Universal life insurance is a combination of a term life policy and the ability to accumulate cash value. – flsenate.gov/Session/Bill/2013/242/Analyses/2013s0242.pre.bi.PDF Kansas…

Universal Life – Cash Value 1996 – AP – Determinants of universal life insurance cash values, by James M. Carson, Journal of Risk and Insurance (Vol. 63, Issue 4) – <JSTOR-?> 1997 – JIR / NAIC – An Analysis of Life Insurance Illustrations: Regulatory Implications of the Disparity between Policy Yields Based on Illustrated Versus…

Universal Life – Why? UL insurance was an industry response to those who planned to “buy term and invest the difference” when interest rates spiked in the late 1970s. 2014 – SOA – Sustained Low Interest Rate Environment: Can It Continue? Why It Matters, Society of Actuaries – 51p (p17) – Prior to the 1980s,…

Universal Life is not Permanent Jesse M. Schwartz: Why are people so reluctant to call Total Life permanent insurance? Myron H. Margolin: Universal Life type products are, I suppose, permanent. It is a semantic question whether they are permanent life or not, but clearly they are not the traditional cash value products as we have…

Universal Life – Original Concept Universal Life is not well understood and part of the mystery about it may well be due to a failure in my communication…… …Universal Life was developed in 1962 as a generic plan, which means that it subsumes all other life insurance products. 1987 – Book – The Search…

Copy of Q: How Can Universal Life Insurance Be Classified? Permanent / Whole / Term / Other

Universal Life – China

BGF – Benefit Generating Function

Universal Life – States

Universal Life – Cash Value

Q: Universal Life – Why Was it Created?

Universal Life is not Permanent

Universal Life – Original Concept