Universal Life Modeling Example
- Universal life plans offer the policyholder great flexibility in their use of the plan -- from a term plan to an investment vehicle.
The funding level affects:
- 1. Universal life commissioners reserve valuation method reserves -- In particular the r factor is the ratio of the actual fund value to the guaranteed maturity fund.
- Since r is capped at I00%, using a ratio based on the average fund for all policies may not produce the actual reserve
1994 - VALUATION ACTUARY SYMPOSIUM PROCEEDINGS - SESSION 8 - Life and Deferred Annuity Liability Models - Society of Actuaries