• This creature called universal life has evolved from a combination of term insurance and a flexible premium annuity to a range of differing products with various design features.
  • Common to any of these variations is the fact that future cash values cannot be determined completely at issue.
  • Cash values (and other benefits) are produced by a formula that is specified in advance. Some of the various elements used in the formula, however, can be adjusted after issue by the insurer. 
• 6. THE CONCEPT OF THE BENEFIT GENERATING ACCOUNT
  • We have mentioned several times that the function of the account value is to determine future benefits. 

1983 - SOA - Universal Life Valuation and Nonforfeiture: A Generalized Model, Shane A. Chalke and Michael F. Davlin, Society of Actuaries - 72p