2018 - Book - Statutory Valuation of Individual Life and Annuity Contracts

  • 2018 - Book - Statutory Valuation of Individual Life and Annuity Contracts | 5th Edition -- by Donna Claire, Lombardi and Summers
  • (p323) - 14.4 Universal Life Insurance Model Regulation
    • Flexible premium products introduce special valuation problems using traditional methods in that some assumption as to future premiums is required.
    • The typical "present value of future benefits less the present value of future net premiums" formula is challenging to apply to flexible premium universal life policies, since neither "future premiums" nor "future benefits" are known for any particular policy.