PremiumsandBenefits
Premiums, Costs, Value and Benefits – Reserves
Premiums and Benefits – Reserves The 1980s ushered in the era of universal life policies. While such universal life policy features as flexible premiums, current and guaranteed cost of insurance scales, guaranteed maturity funds and guaranteed maturity premiums added a few wrinkles to the calculation process, the fundamentals of generating policy reserves remained fairly intact.…
Read MorePremiums, Costs, Values and Benefits – Universal Life – Math
Premiums and Benefits – Universal Life – Math Policy Mechanics Its fundamental “mechanics” are indistinguishable from those underlying traditional life insurance products. [Bonk: Its = Universal Life] — Samuel H. Turner, President, The Life Insurance Company of Virginia 1982 – Journal of Insurance Medicine – 1p
Read MorePremiums, Costs, Values and Benefits – Universal Life – Concept
Premiums and Benefits – How Universal Life Works – Concept Broken down to its simplest basis, Universal Life has eliminated the concept of “plan of insurance”….. — Christian J. DesRochers 1983 – SOA – Universal Life, Society of Actuaries – 24p In fact, it is accurate to describe Universal Life as a generalized version of the…
Read MoreQ: How Do Agents Use Life Insurance Illustrations?
Q: How Do Agents Use Life Insurance Illustrations? How do Agents use these? It would be good to hear from agents. — Richard Wicka, WI-Chair) 2018 12 – NAIC – Life Insurance Illustrations Issues Working Group 2017 – State Farm Agent Training / Van Mueller Approximately 2:11 – “I don’t ever use an illustration.” See…
Read MorePremiums, Costs, Values and Benefits – Understanding Illustrations
Premiums and Benefits – Understanding Illustrations Ask your insurance agent, financial advisor, or an insurance company representative for an illustration showing future values and benefits. (p5) 2018 – NAIC Life Insurance Buyer’s Guide – 8p He <Birny Birnbaum> disagreed with Mr. Lovendusky <ACLI> that an accompanying illustration would reduce the complexity of products for consumers. He said…
Read MoreQ: Are Life Insurance Policies Being Sold For a Death Benefit or an Investment Vehicle?
Q: Are Life Insurance Policies Being Sold For a Death Benefit or an Investment Vehicle? Life Insurance as an Investment LIRP/ SLIRP – Life Insurance Retirement Plan LIRP – Life Insurance Retirement Plan – Index MetLife 1990s FSOC I didn’t buy a Life Insurance Policy SOA – Looks like an Annuity Walker vs.…
Read MorePremiums, Costs, Values and Benefits – Consumer Testing
Premiums and Benefits – Consumer Testing Focus Groups – NAIC – 2000s 1990-1A, NAIC Proceedings – NAIC / LIMRA – Universal Life Disclosure Form Focus Group Summary, Consumer Issues Disclosure Working Group – NAIC — [BonkNote] — 10p With that in mind, we started by making a list of basic information about life insurance that…
Read MorePremiums, Costs, Values and Benefits – Expectations
Premiums and Benefits – Expectations Mr. Birnbaum suggested that questions for consumer testing could come from the Assurity white paper, such as whether a consumer can reasonably be expected to understand the consequences of varying payment patterns after reading the summary. Ms.Winer asked if it would be useful to ask states whether they have received…
Read MorePremiums, Costs, Values and Benefits – Reputational Risk
Premiums, Costs, Benefits and Values – Reputational Risk We believe current illustrated rates are much higher than what is reasonably expected over the course of the policy and may lead to consumer disappointment, which could negatively impact the entire industry. — Metropolitan Life Insurance Company, New York Life Insurance Company and Northwestern Mutual Life Insurance…
Read MorePremiums, Costs, Values and Benefits – Consumer Reps
Premiums and Benefits – Consumer Reps How much do the benefits build up in the policy? How will the timing of money paid and received affect interest? 2018 – LIBGWG – Cude Letter / Markup Life Insurance Buyer’s Guide – Revised 2-9-18 for discussion on conference call 2-22-18 The personalized information in the…
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