Universal Life and Adjustable Life are Different

  • Adjustable Life is quite different in form from Universal Life, largely because it retains the traditional principle that savings and insurance elements are intertwined--but we shall see that the same objectives can be accomplished.

-- Charles Trowbridge

1976 - SOA - Adjustable Life Products, Society of Actuaries - 14p

  • There are semantic problems here.
    • Adjustable life used to apply to the specific product that Bankers of Iowa and Minnesota Mutual had. 
    • That product had many characteristics of the traditional cash value policy.
    • Some use the expression "adjustable life" to apply to Universal Life products.
    • I do not know whether you meant to apply adjustable life to those.

--  Myron H. Margolin

1981 - SOA - The Future of Permanent Life Insurance, Society of Actuaries - 22p

  • Universal Life
    • Unlike adjustable life, where a current plan is defined, but is subject to change, a universal life policy at any time has only a "minimum" and a "maximum' plan....  (p662)

1989-1, NAIC Proceedings 

  • The Stock Company proposal also would make permanent the provisions of TEFRA relating to:
    • (6) The section 101(f) "guidelines" for universal and adjustable life insurance policies.  (p356)

--  The Stock Company Information Group

1983 0510, 0511 and 0728 - GOV (House) - Tax Treatment of Life Insurance - [PDF-991p-GooglePlay

  • The contract <Universal Life> is a lot like the Adjustable Life concepts of The Bankers and Minnesota Mutual, with the significant, additional flexibility that a plan change is not required each time there is a change in premium payments.

-- Spencer Koppel

1979 - SOA - Future Trends and Current Developments in Individual Life Products (rsa79v5n44), Society of Actuaries - 24p 

  • Some common names for dynamic products include universal life, variable universal life, unit-linked life, and adjustable life.  (p288)

2000 - Book - Life Insurance Products and Finance, D.B. Atkinson and J.W. Dallas

  • 1982-2, NAIC Proceedings - (524-526) - Statement on Behalf of the American Council of Life Insurance to the NAIC (A) Committee's Manipulation, Lapsation, Dividend Practices and Annuity Disclosure Task Force - June 8, 1982
    • 1. The product commonly referred to as "universal life insurance" has aroused considerable attention and is being marketed to an increasing extent.
      • Under a universal life insurance policy, the insured has considerable flexibility with respect to the amount and timing of premium payments.
      • It is possible for the insured to skip premium payments and still have the policy continue in force, even until the point at which the policy expires or matures.
      • Under these circumstances, when is a policy to be considered as having lapsed for the purpose of the proposed disclosure system?
      • How about the situation where a premium is paid, but at a substantially lower level than the policyholder had been paying?
      • Should this be considered a partial lapse and, if so, how should the amount lapsed be measured?
    • 2. Another recent product is "adjustable life insurance."
      • The policyholder must pay premiums on the specified due dates but can request changes in the amount of the premium, the amount of insurance, or the plan of insurance.
      • The policy thus can be changed from a permanent insurance plan to a term plan, and vice versa.
  • How are such policies to be handled under the advisory committee's proposed system, which calls for a separation of the experience between permanent and term insurance?

1982-2, NAIC Proceedings