NAIC - Life Insurance Info - Add

  • NAIC
  • Be Sure You Can Afford the Premium Payments
    • Before purchasing a life insurance policy, be sure that you can afford the cost.
    • Can you afford the initial premium?
    • If the premium increases later, will you still be able to afford it?

NAIC

Have an Insurance Agent Help You Evaluate the Future of Your Policy

  • How quickly does the cash value grow?
    • Some policies have low cash values in the early years that build quickly later on.
    • Other policies have a more level cash value build-up.
    • Ask your agent for a year-to-year display of values and benefits.

<Bonk>

  • No mention of declining cash value
  • Non-Guaranteed Elements / Assumptions - Interest Rate, Costs
  • Dynamic - Zero - 
  • 1994-3, NAIC Proceedings - Sample Policy Illustrations (Attachment Four-C) - VanLeer  - John Hancock - p547-563 - 17p

 

What I noticed was there is a requirement for in-force illustrations, and people may have thought they bought one thing and whenever you have to give them an in-force illustration with a current disciplined scale, they're going to realize they bought something else.

  • I think many companies will have serious problems with policyholder retention.

  --  Mark J. Greene, FSA. MAAA, Supervising Actuary, New York State Insurance Department

1995 - SOA - Practical Illustrations and Nonforfeiture Values, Society of Actuaries - 14p