Cost

  • Until the buyer understands how the product works, attempts to compare price are essentially meaningless.

1972 - SOA - Life Insurance and the Buyer by Anna Rappaport, Society of Actuaries - 2p-Article

  • 1976 - SOA - Cost Comparisons and Policy Language, Society of Actuaries - 16p
  • The cost of life insurance policies depends upon the level of the premiums, dividends, and cash values.

1982-2, NAIC Proceedings

  • Ironically, all the columns, figures, pages, disclaimers, and disclosures do not tell consumers what they really want to know --
    • What does the insurance cost?
  • Below are my suggestions for what an illustration should tell a consumer.

--  J. Robert Hunter 

1994-2, Proceedings

  • The group first considered a suggestion from Chris Kite (FIPSCO) for a new type of index that would allow consumers to compare the assumptions in the illustration.
    • Mr. Kite said his index has the advantage of prompting the prospect to question assumptions used.
  • Delmer Borah (MassMutual) suggested that consumers are more concerned about total cost than assumptions. 
  • Brenda Cude (Cooperative Extension Service) opined that the target audience does not care about assumptions.

--  Report of the Cost Indices Subgroup of the Life Disclosure (A) Working Group

1996-3V2, NAIC Proceedings - (p931) - Aug. 15, 1996

  • The cost of insurance protection provided by universal life policies is similar to term insurance — that is, the cost will increase as the policyholder gets older. (p61)

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