Waiver of Monthly Deductions for Flexible Premium Universal Life Insurance Policies
14. Flexible premium universal life insurance policies do not require specified premiums as traditional policies do.

  • The “waiver” benefit entities offer is a “waiver of monthly deductions” benefit as opposed to a “waiver of premium” benefit.
  • The difference being specific premiums may or may not be required under the policy regardless of whether the insured is disabled or not. Waiver of a deduction is not to be considered revenue nor a benefit paid, therefore a calculation of the amount of the deduction need not be made for flexible premium universal life insurance policies.