Benefits
Benefits
- The main concern was that an unsophisticated buyer purchased a policy and did not know what the coverages, benefits and limitations were.
1988 0603 – Universal & Other New Plans (A) Task Force – NAIC – Attachment Two
1988-2, NAIC Proc.
- Maybe he is not getting all the disclosure he needs, as far as the continuing benefit is concerned, when the interest rates change from that illustrated.
— Gary P. Monnin, Senior Vice President, Chief Actuary of American Founders Life Insurance Company
1982 – SOA – Universal Life (rsa82v8n111), Society of Actuaries – 14p
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How much do the benefits build up in the policy? How will the timing of money paid and received affect interest? |
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2018 0918 – LIBGWG (NAIC) – Brenda Cude Letter / Markup Life Insurance Buyer’s Guide – Revised 2-9-18 for discussion on conference call 2-22-18 –
- LIBGWG – Life Insurance Buyer’s Guide Working Group – (A) – NAIC — [BonkNote]
NAIC Recent Working Groups
-Cude LIBGWG? Markup – What does Benefit mean?
-Life Insurance Buyer’s Guide…. Do your Premiums or Benefits change?
- Product designs can be complex, with benefits contingent on a range of potential risks that may vary over time, as well as with certain guarantees made by the insurer.
2009 1124 – Letter – AAA to GOV (House) Barney Frank (D-MA) / Spencer Bachus (R-AL) – Financial Regulatory Reform Task Force of the American Academy of Actuaries – 3p
- Benefits – ACLI
- Benefits – Actuarial
- Benefits – Consumer Representatives
- Benefits – Industry Groups
- Benefits – NAIC / Regulators
- “benefit charges” – Universal Life Model Regulation (MDL-585)
- Chalke – Benefit Reserves, Benefit Generating Account (BGA), Benefit Generating Function (BGF),
- Current assumptions are critical to interest sensitive products such as Universal Life.
- When interest rates are high, benefit projections (such as cash value) are also high.
- When interest rates are low, these projections are not as attractive.