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.
-- ALAN L. IGIELSKI
1992- LIFE INSURANCE SALES ILLUSTRATIONS, Society of Actuaries - 16p