Starters - Policy Overview

  • Policy Overview
  • Cover Page
  • Policy Narrative
  • If appropriate, the paragraph might add something like "The amount of premium you have elected to pay, $300 per year, is however insufficient to keep the policy in force to age 95 at the guaranteed minimum interest rate of 4%; the policy would terminate at age 66.
  • To be sure that the policy continues to age 95, even at the minimum interest rate of 4%, you would have to pay  $644.30 per year for the entire life of the policy.  (p466) 

1990-1A -  NAIC Proceedings - NAIC / LIMRA Focus Group - Universal Life Disclosure Form Test Market Results - 10p

The American Council of Life Insurance (ACLI) presented a paper on cost disclosure for universal life products...

  • Further, the policy summary should include a statement on the point at which the policy will expire based on the policy guarantees and the anticipated premiums shown in summary.
  • Basically, it summarized that universal life should be treated as a life insurance plan with a nonguaranteed cost element for cost disclosure purposes.

1982-1, NAIC Proceedings

13. The Cover Page for any illustration should contain the annual premium necessary to maintain the policy to maturity based solely upon the guarantees in the policy. <Bonk: Guaranteed Maturity Premium?>

  • This will assist the policyowner in understanding the differences between guaranteed and non-guaranteed policy features.

1994-1, NALU (NAIFA) - NAIC Proceedings