Worldview - Sandbox
These products <Universal Life Insurance> 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, August - Financial Sector Assessment Program-Technical Note-Insurance Supervision and Regulation, by International Monetary Fund. Monetary and Capital Markets Department
MR 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 Actuarie
...why has the sailing been smooth for mature products similar to universal life insurance abroad, while in China things have been so turbulent?
- Whole life: The policyholder pays fixed premiums and has no control over investments, which are left to the insuring company.
- Universal life: The policyholder can vary premiums by paying them with some of the accumulated cash value of the policy, and the policyholder normally receives a minimum guaranteed rate of return at money market rates. As with whole life, the universal life insurance policyholder generally does not have control over the investments. However, if the policy does permit the selection of specific investments, report the policy as a variable life insurance policy.