The key to our proof was to bundle the product back up and to look at the guaranteed future benefits.

• When we did this, we made some interesting discoveries.
• Perhaps the most important was that the role of the  account value and mortality and interest guarantees to define what the policy's guaranteed death and endowment benefits are at any time.
• These elements form what we called the cost structure of the policy.
• In order to obtain a certain pattern of guaranteed
  benefits, how much does the policyholder have to put in his account value?
• If a company decides to charge mortality rates twice those of 1980 CSO, a larger account value is required to generate a given pattern of guaranteed benefits than would be the case if the company charges 1980 CSO rates.
• In other words, one product would be more expensive than the other.

--  MICHAEL F. DAVLIN

1983, Universal Life, Society of Actuaries