John W. Keller

  • The number one perceived problem is that buyers simply do not understand the nonguaranteed nature of life insurance illustrations.
    • Also, it is impossible for the average buyer to judge the reasonableness of the assumptions underlying the numbers in the illustration. 

--  John W. Keller, Northwestern Mutual

1991 - SOA - Illustrations, Society of Actuaries - 20p

  • This was an optional idea that we called "Illustrations As Road Maps."
    • The concept is that instead of letting the actual performance of a Universal Life policy diverge over time further and further from what was originally illustrated, you could send policyholders a notice each year on the anniversary, if the results are below what was illustrated.
    • A letter would state the need to pay an additional amount to get back to what was illustrated, because interest rates are lower.
    • This would have two advantages.
      • First, it would keep people on track with their illustrations.
      • Second, it would help people understand the workings of their universal life policy."

--  John Keller, Northwestern Mutual

1991 - SOA - Illustrations, Society of Actuaries - 20p