Starters - Universal Life Insurance as DIY - Design It Yourself

<Universal Life> afford(s)purchasers greater flexibility in designing their contracts so as to meet their individual needs. 

-- STATEMENT OF THE <ACLI> AMERICAN COUNCIL OF LIFE INSURANCE, BEFORE THE NASAA/NAIC JOINT REGULATORY INSURANCE PRODUCTS STUDY COMMITTEE,  August 31,1981

1982-1, NAIC Proceedings

In fact, a UL <Universal Life> policy will turn out to provide term life insurance, whole life insurance, or endowment insurance, depending on the premiums paid and other policy factors.

2015, Life Insurance, Black Jr., Skipper, Black III, (Huebner Series)

  • The insurance function also saw slightly more DIY products, giving households greater control.
  • These new products included universal- and variable-life plans.

2010 - A Brief Postwar History of US Consumer Finance - [PDF-53p]

  • It would be most useful if the updated illustration was designed to fit the needs of the policy owner.
  • The insurer won't have this information.

1995-1, NAIC Proceedings

  • In fact, it is accurate to describe Universal Life as a generalized version of the actuarial formulas underlying traditional life insurance products.
  • In other words, it is possible to produce any traditional plan of insurance from the generalized formulas underlying universal life.


    --   Alan Richards, president and chief executive officer of E. F. Hutton Life Insurance Co.,

    1983 - GOV -  Tax treatment of life insurance: Hearings before the Subcommittee on Select Revenue Measures of the Committee on Ways and Means, page 448.

It's very possible to have a 25-year term with zero cash value, using a UL product.

--  LAWRENCE SILKES

1990 LIFE PRODUCT DEVELOPMENT UPDATE, Society of Actuaries


Video: Exam MLC Problem 297 - "Learning Objective "Universal Life."  Question: Calculate the Level Annual Premium that results in an account value of 0 at the end of the 20th year." - UW- Madison / Society of Actuaries - <Bonk: Goal --> use a Universal Life policy to design a 20-year term policy.>  

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Drafting Note: The drafters chose a whole life initial expense allowance for several reasons.

  • Although highly flexible, universal life insurance is generally considered a permanent life insurance plan.
  • Most companies encourage a premium level which will provide lifetime insurance protection.
  • Every universal life insurance policy of which the drafters are aware has a “net level premium” that could be computed which would guarantee permanent protection.
  • As a result, it is expected that most universal life insurance policies will be sold as permanent plans.

https://www.naic.org/store/free/MDL-585.pdf

Universal Life Model Regulation – Snippets