Universal Life - Who wanted this?

  • These products <Universal Life, etc> arose from a significant rise in interest rates in the early 1980’s and a wave of consumer demand for products better meeting their needs. (p37)

2020 08210 - IMF - UNITED STATES FINANCIAL SECTOR ASSESSMENT PROGRAM TECHNICAL NOTE—INSURANCE SUPERVISION AND REGULATION - IMF Country Report No. 20/244 - [LINK-94p]

  • Actually the demands for many of these new products come from the marketplace. (p338)

-- Thomas Gregg, National Association of Life Underwriters. (NALU)> 

1983 - GOV - Tax Treatment of Life Insurance - [PDF-

  • WALTER MILLER: Arnold <Dicke> suggested that universal life stemmed from the desire of many consumers to have a product that unbundles the insurance and investment elements.
  • At New York Life, we get a lot of communications from policyowners but we cannot remember one single request for a product that unbundles the insurance and investment elements.
  • I would like to ask how many people here have received requests for such unbundling from the public. (No hands were raised.)

1981 EQUITY FOR EXISTING POLICYOWNERS, Society of Actuaries

New Products and Special Markets

A. Modern computers make it feasible to consider marketing a flexible policy under which the premiums and benefits could be changed to meet the changing needs of the policyholder.

ARDIAN C. GILL

  • Computers may make it feasible to produce a highly flexible policy with benefits and premiums that vary with the policyholder's whim.
  • Whether it is desirable to do so is another question.
  • The truth probably is that the general public neither  needs nor wants a great deal of flexibility.
  • Any attempts on our part to anticipate his changing needs and to build into our policies the necessary flexibility may well be futile for the run-of-the-mill policyholder.

1967 - INDIVIDUAL LIFE AND HEALTH INSURANCE, Society of Actuaries - 62p

 

  • UL insurance was an industry response to those who planned to “buy term and invest the difference” when interest rates spiked in the late 1970s. (p35)

2014 - Sustained Low Interest Rate Environment: Can It Continue? Why It Matters, Society of Actuaries - 51p