Debatable
As long as you pay the premium
As long as you pay the premium…. Coverage Period Coverage Period – Examples Let’s review the basic mechanics of Universal Life. The policy does not lapse if a premium is not paid; rather, it lapses if the fund balance becomes too small to pay the next month’s cost of insurance. — Ben H. Mitchell, [Bonk:…
Read MoreQ: Was AIG an Insurance Company or Something Else?
Q: AIG – Was AIG an Insurance Company or something Else? And we were told that it was the intention of the Federal Reserve, with the full support of the Administration, to make $80 billion available for the insurance company AIG. — Barney Frank (D-MA) 2009 0210 – GOV (House) – Extraordinary Efforts by the…
Read MoreQ: Where Did They Get Their Information?
Where Did They Get Their Information? With more conservative assumptions, policyholders pay in higher amounts in premiums than are required to pay the death benefits they contract for. Because the premiums earn more in reality when invested than they were assumed to and because the benefit payouts occur less gradually in reality than they were…
Read MoreLapse vs Surrender
Lapse vs Surrender Lapses and Surrender Charges Ideally you would like to compare lapses (no cash value) and surrenders (with cash value). 1994 – SOA – VALUATION ACTUARY SYMPOSIUM PROCEEDINGS – SESSION 8 – Life and Deferred Annuity Liability Models – 32p
Read MoreRewriting History? – Universal Life
Universal Life – Whole Life or Any Plan – History Rewritten Universal Life is not well understood and part of the mystery about it may well be due to a failure in my communication…… …….Universal Life was developed in 1962 as a generic plan, which means that it subsumes all other life insurance products.…
Read MoreMarket Conduct Regulation vs Solvency Regulation
Market Conduct Regulation vs Solvency Regulation Solvency Market Conduct (p12) – Daniel Schwarcz (Associate Professor, University of Minnesota Law School: So, notably, you will see that my testimony was focused on different issues than many of the other witnesses, and that is because it is true that solvency regulation is in many ways the core…
Read MoreTwin Peaks Regulation
Twin Peaks Regulation “twin peaks” “regulation” “reputational” GOV Video – ?? 1st COP Hearing – Sununu
Read MorePlan of Insurance vs Policy vs Contract
Plan of Insurance vs Policy vs Contract Any of the foregoing provisions or portions thereof not applicable by reason of the plan of insurance may to that extent be omitted from the policy. (p243) 1942-Supplement, NAIC Proceedings
Read MoreLow Interest Rate Environment
Low Interest Rate Environment I work in the private client division at Merrill-Lynch. How have we done during the past few years? Well, this year we expect to sell more than $2 billion in annuity products, and we expect to sell $50 million in annual premium life insurance: traditional life insurance, whole life, universal life,…
Read MoreQ: What Came First Universal Life or Adjustable Life?
Q: What came first Universal Life or Adjustable Life? Tom BAKOS: Well, I guess I’d just like to mention that I think actually UL was developed in 1960-something-or-other. FROM THE FLOOR: That was adjustable life. Tom BAKOS: I think Cannibal Life was the precursor. 2003 – SOA – Do You Know How Much You’re Spending?…
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