Policy Mechanics – Cash Flow – Page 2

Q: Should A Life Insurance Policy Be Split? – SIV/CIV High early cash value policies, “premium endowments,” and other policies which overemphasize the cash-value buildup have been around for years. Recently, however, some state insurance departments have been taking a closer look at these policies. At least one state has gone so far as to…

Q: Who Can Explain How Life Insurance Policies Work? The insider joke about indexed universal-life policies is that it takes an actuary, an attorney and maybe even an engineer to understand how the product works. Some regulators worry that hypothetical projections of savings growth using these indexes are overly rosy and can lead to unrealistic…

Elements In my experience very smart people don’t really know what all the components mean. I mean I feel like it does lead to confusion. So, I think if you can refer to the eventual illustration and just show the cash value. — Teresa Winer (GA) 2019 0917, NAIC – LIIIWG – Life Insurance Illustrations Working Group,…

BGF – Benefit Generating Function BGA – Benefit Generating Account BGF – Benefit Generating Function Premium Calculation One thing to keep in mind is that you can take a traditional whole life policy and determine an underlying benefit generating function, because the cash values are simply there. You can fix one item and say, “We…

Common Sense The fact that we charge people fees that we have disclosed and that fees reduce the value of your policy, and if your policy keeps reducing in value, it will lapse, is not a fraud. That’s common sense. That’s how life insurance works. (p171) — Closing Argument by Mr. Martens, (Defense Attorney, LIfe…

M&E Charge Now how could the staff be sure that this M&E charge was not a secret sales load? — W. Randolph Thompson, with the law firm of Jones & Blouchin Washington, will speak on some SEC issues 1993 – SOA – Variable Products — Product for the 1990s?, Society of Actuaries – 22p

Illustrations – COI – Cost of Insurance … the Court likewise discerns no bad faith in LSW’s decision to illustrate policy performance net of fees rather than to illustrate those fees as separate line items in all instances. 2015 0415 – LC – Document 791 – Order Regarding Post-Jury Trial UCL Proceedings Judge Selna -…

Loads 1984 – SOA – Rear End Loaded Funds, Society of Actuaries – 22p

Premium Payment Options The complications begin with a very simple question: What’s the premium for Universal Life? It could be almost anything. Then what’s the cash value? That depends on the premium. It is the relationship between the premium and cash value that determines the product characteristics of Universal Life. — Ben H. Mitchell, [Bonk: a…

Black Box 1996 – SOA – The Actuary, The Actuarial Black Box, by Sam Gutterman, Society of Actuaries – 2p 2009 0305 – WSJ – AIG’s Black Box The fourth rescue is not a charm, by Author-? – [link] What UL does, among other things, is to let the policyowner or maybe the agent pick…