Sandbox UL - Premium - 415

2017/11/15  - ACLI revised draft and letter - Life Insurance Buyer's Guide Working Group

Permanent (cash value) insurance covers you for your entire life – Unlike a term policy, which can end after a specified number of years, permanent life insurance will continue to the policy’s maturity age so long as premiums are paid. (Note that this isn’t exactly accurate for UL, where policies can continue as long as the cash value is sufficient to pay the policy charges. We may want to make that distinction.)as long as you pay the premiums. Permanent life insurance is ideal for needs that may last for your entire life

You generally pay a planned premium designed to keep the policy in force for life, and accumulate cash value, based upon the interest and expense and mortality charges you assume.

CurrentBasic Types Of Policies, (Universal Life) New York State - Department of Financial Services

YOUR PREMIUM PAYMENT AMOUNT IS PROBABLY NOT GUARANTEED AND MAY INCREASE - Most universal life insurance policies do not provide long-term guarantees of premium payments, cash value or benefits. Any payments plus any existing cash value in the policy must be enough to cover ongoing policy expenses or the policy will lapse and you will no longer be covered.

Consumer Alert - Universal Life  - New York - Department of Financial Services

Some of the items identified which should be disclosed: ... 
 (2) adequate disclosure of the fact that a premium quoted will not support the contract for the whole life if the policy is a universal life policy;

1988 - Proc. II 566., UNIVERSAL LIFE INSURANCE MODEL REGULATION  NAIC Proceeding Citations

LEGAL CASE - Blumenthal v New York Life

...the facts are controverted that the policy clearly and unambiguously informs a reasonable insured that the policy will lapse if only the planned premiums are paid.

Case 5:08-cv-00456-F Document 85 Filed 06/01/10 Page 15 of 37
PLAINTIFF'S RESPONSE TO DEFENDANT'S MOTION FOR SUMMARY JUDGMENT AND BRIEF IN SUPPORT

DEPOSITION OF DAVID SANDERFORD
MARCH 4, 2010

Expert Witness for the Plaintiff, Blumenthal

(f) The 1999 Illustration states that the policy is a "flexible premium" policy
which obligates an insured to pay sufficient premiums to keep the policy in force. Id.
"The policy will terminate if at any time the cash surrender value is insufficient to pay the monthly deductions. This can happen due to insufficient premium payments . . . or if current interest rates or charges fluctuate." Id.

PLAINTIFF'S RESPONSE TO DEFENDANT'S MOTION FOR SUMMARY JUDGMENT AND BRIEF IN SUPPORT
Case 5:08-cv-00456-F Document 85 Filed 06/01/10 Page 10 of 37

2018/3/14, ACLI - LIIIWG CC NAIC Proceedings

Ms. Micale said the ACLI is concerned with data element B(1)(b)(3) "A short statement describing if the premium varies after the first year, and, if so, how premium will be determined."

Ms. Micale asked what information was envisioned in data element "a description of cost of insurance fees needed  to keep the policy in force and how it changes over time"

In a universal life policy, you can choose
a flexible premium payment pattern as
long as you pay enough to keep your
policy in force.

Have the premiums or benefits
changed since your policy was
issued?