Universal Life with Secondary Guarantees (ULSG)
- The Universal Life contract with secondary guarantees has been one of the most controversial life insurance products introduced in the United States.
2014 04 - Model Validation for Insurance Enterprise Risk and Capital Models, Sponsored by CAS, CIA, SOA Joint Risk Management Section, prepared By Markus Stricker, Shaun Wang, Stephen J. Strommen
- Regulation XXX
- In addition, XXX affects reserving for universal life plans with secondary guarantees.
- The specific concern addressed here deals with a term plan that is hidden in a universal life plan.
- These plans will have an additional guarantee that, if a certain premium is paid for 15 or 20 years, then the policy will not lapse, despite the fact that there may not be a positive account value on the policy.
- Essentially, this allows the policy to operate like a 15- or 20-year level term.
-- CRAIG R. RAYMOND
1995 - SESSION 2: Life and Annuity Valuation Issues - VALUATION ACTUARY SYMPOSIUM PROCEEDINGS - 38p