Premium Per Thousand

  • For cost comparison purposes, the natural unit price for insurance is dollars of Premium per thousand dollars of death benefit per year—adjusted as appropriate and cash surrender values.

--  [ACLI] American Council of Life Insurance, on the FTC Staff's Responses to Criticisms of the Report of the Report on Life Insurance Cost Disclosure 

1979 0710 and 1017 - GOV (Senate) - FTC Study of Life Insurance Cost Disclosure, Senator Howard Cannon (D-NV)   ---  [BonkNote]  ---   [PDF-592p]

  • While it is possible to make some sort of cost comparison in these cases on the basis of cost in a given year per $1,000 of net protection, such comparisons apparently can be misleading in some cases when the original policy is an endowment or retirement income policy or a limited payment policy.

1969 - SOA - Life Net Cost Comparisons, Society of Actuaries - 34p

  • I see four major potential problem areas:
    • a. The Model requires various numerical amounts -- cash values, death benefits, dividends -- to be presented on a "per policy" basis, not on a per thousand or per unit basis."
      • [Bonk: Model = NAIC Model Life Insurance Solicitation Regulation]

--   Donald B. Maier

1976 - SOA - Cost Comparisons and Policy Language, Society of Actuaries - 16p

  • The maximum guideline level premium under TEFRA for a male age 35 purchasing our universal life policy is $15.33 per thousand of insurance.
  • By contrast, the average level premium for participating whole life insurance sold by 25 of our larger competitors is $21.92 per thousand, and that is 43 percent greater.
  • Furthermore—and I find this most interesting—the actual average annualized premium received by Hutton is considerably less than the $15.33.
  • Actually, since TEFRA it has been $9.46.
  • I think these numbers clearly demonstrate that universal life is not an investment.

1983 0510/11 and 0728 - GOV - Tax Treatment of Life Insurance

    • [PDF-
    • Subcommittee on Select Revenue Measures of the Committee on Ways and Means