Universal Life and Adjustable Life are Different

Adjustable Life is quite different in form from Universal Life, largely because it retains the traditional principle that savings and insurance elements are intertwined–but we shall see that the same objectives can be accomplished.

— Charles Trowbridge

1976 – SOA – Adjustable Life Products, Society of Actuaries – 14p

There are semantic problems here.
- Adjustable life used to apply to the specific product that Bankers of Iowa and Minnesota Mutual had.
- That product had many characteristics of the traditional cash value policy.
- Some use the expression “adjustable life” to apply to Universal Life products.
- I do not know whether you meant to apply adjustable life to those.

— Myron H. Margolin

1981 – SOA – The Future of Permanent Life Insurance, Society of Actuaries – 22p

Unlike adjustable life, where a current plan is defined, but is subject to change, a universal life policy at any time has only a “minimum” and a “maximum” plan…. (p662)

1989-1, NAIC Proceedings

The Stock Company proposal also would make permanent the provisions of TEFRA relating to:
- (6) The section 101(f) “guidelines” for universal and adjustable life insurance policies. (p356)

— The Stock Company Information Group

1983 0510, 0511 and 0728 – GOV (House) – Tax Treatment of Life Insurance – [PDF-991p-GooglePlay

The contract [Universal Life] is a lot like the Adjustable Life concepts of The Bankers and Minnesota Mutual, with the significant, additional flexibility that a plan change is not required each time there is a change in premium payments.

— Spencer Koppel

1979 – SOA – Future Trends and Current Developments in Individual Life Products (rsa79v5n44), Society of Actuaries – 24p

Some common names for dynamic products include universal life, variable universal life, unit-linked life, and adjustable life. (p288)

2000 – Book – Life Insurance Products and Finance, by D.B. Atkinson and J.W. Dallas

1982-2, NAIC Proceedings – (524-526) – Statement on Behalf of the American Council of Life Insurance to the NAIC (A) Committee’s Manipulation, Lapsation, Dividend Practices and Annuity Disclosure Task Force – June 8, 1982
- 1. The product commonly referred to as “universal life insurance” has aroused considerable attention and is being marketed to an increasing extent.
  - Under a universal life insurance policy, the insured has considerable flexibility with respect to the amount and timing of premium payments.
  - It is possible for the insured to skip premium payments and still have the policy continue in force, even until the point at which the policy expires or matures.
  - Under these circumstances, when is a policy to be considered as having lapsed for the purpose of the proposed disclosure system?
  - How about the situation where a premium is paid, but at a substantially lower level than the policyholder had been paying?
  - Should this be considered a partial lapse and, if so, how should the amount lapsed be measured?
- 2. Another recent product is “adjustable life insurance.”
  - The policyholder must pay premiums on the specified due dates but can request changes in the amount of the premium, the amount of insurance, or the plan of insurance.
  - The policy thus can be changed from a permanent insurance plan to a term plan, and vice versa.
How are such policies to be handled under the advisory committee’s proposed system, which calls for a separation of the experience between permanent and term insurance?

1982-2, NAIC Proceedings

Universal Life Insurance:
- …a flexible premium life insurance policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the premium payments.
- Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates which may change from time to time. (p138/G30)

Adjustable Life Insurance:
- a type of insurance that allows the policyholder to change the plan of insurance, raise or lower the face amount of the policy, increase or decrease the premium, and lengthen or shorten the protection period. (p109/G1)

2002 – IAIS / United Nation – Supervision of Insurance Operations – 140p