Starters - Policy Cash Flow Mechanics

  • First thing that I want to say is that there have been some references to Misleading Illustrations. 

  • I'm certainly not aware of the Regulators have not found that Illustrations are misleading. 

  • That seems to be just an allegation that is left hanging in the air, which is inaccurate. 

  • The Illustration is not misleading.

  • The policy is performing according to policy mechanics. 

    --  Scott Harrison  (Harrison Law)

    2019/11/15 - Indexed Universal Life Insurance Working Group (IULWG) - NAIC - Conference Call <Bonk>

Its <Universal Life> fundamental "mechanics" are indistinguishable from those underlying traditional life insurance products.

--  Samuel H. Turner, President - The Life Insurance Company of Virginia

1982 - Journal of Insurance Medicine - 1p

  • These previous comments remind me of a little story. It also relates to one of the comments Judy made, that agents sometimes do not understand the policies.
  • My mother was thinking of buying an insurance policy on my father, and she asked me to speak to her agent.
  • I spoke to him, and it was a Universal Life policy being proposed. I asked about the crediting rate, and then I said, "What kind of cost-of-insurance (COl) deductions are there?"
  • He didn't understand what I was talking about.
  • I said, "Well if you think of this Universal Life policy as a box, then you pour in premiums and your interest credited, and then pull out the cost of insurance.
  • ...
  • And he said, "I didn't realize that out of this account you're actually pulling out an amount every month to pay for the insurance, and that could vary between companies.
  • I'll have to talk to the company about that, because I never realized that before.


1992LIFE INSURANCE SALES ILLUSTRATIONS, Society of Actuaries - 16p