DIY – Do It Yourself – Universal Life Insurance
DIY – Do It Yourself – Universal Life Insurance
- In fact, it is accurate to describe Universal Life as a generalized version of the actuarial formulas underlying traditional life insurance products.
- In other words, it is possible to produce any traditional plan of insurance from the generalized formulas underlying universal life. (p448)
— Alan Richards, president and chief executive officer of E. F. Hutton Life Insurance Co.
1983 0510, 0511 and 0728 – GOV (House) – Tax Treatment of Life Insurance, Pete Stark (D-CA) — [BonkNote]
Universal Life Insurance… afford(s) purchasers greater flexibility in designing their contracts so as to meet their individual needs.
— ACLI – Statement Of The American Council Of Life Insurance, Before The NASAA/NAIC Joint Regulatory Insurance Products Study Committee, August 31,1981 – 10p
1982-1, NAIC Proceedings
- The insurance function also saw slightly more DIY products, giving households greater control.
- These new products included universal- and variable-life plans.
2010 – AP – A Brief Postwar History of US Consumer Finance, Harvard Business School – 53p
- It would be most useful if the updated illustration was designed to fit the needs of the policy owner.
- The insurer won’t have this information.
1995-1, NAIC Proceedings
- In fact, a UL policy will turn out to provide term life insurance, whole life insurance, or endowment insurance, depending on the premiums paid and other policy factors.
- [Bonk: UL = Universal Life Insurance]
2015 – Book – Life Insurance, Black Jr., Skipper, Black III, (Huebner Series)
- PAGE 5 – Drafting Note: The drafters chose a whole life initial expense allowance for several reasons.
- Although highly flexible, universal life insurance is generally considered a permanent life insurance plan.
- Most companies encourage a premium level which will provide lifetime insurance protection.
- Every universal life insurance policy of which the drafters are aware has a “net level premium” that could be computed which would guarantee permanent protection.
- As a result, it is expected that most universal life insurance policies will be sold as permanent plans.
NAIC – Universal Life Insurance Model Regulation – 585
Universal Life Model Regulation – Snippets
- In terms of breaking permanent life insurance up into a sort of do-it-yourself or build-your-own whole life policy parallel to the cafeteria approach for group benefits, one of the things that I can see happening in the 1980’s — and it will come about as an indirect result of the disclosure activity — is that the amount of money that is tied up in life insurance premiums for putting business in force will become evident…
— John R. Gardner
1980 – SOA – The Future of Permanent Life Insurance, Society of Actuaries – 28p
- It’s very possible to have a 25-year term with zero cash value, using a UL product.
— Lawrence Silkes
1990 – SOA – Life Product Development Update (rsa90v16n4b6), Society of Actuaries – 20p
- VIDEO: Exam MLC Problem 297 – “Learning Objective “Universal Life.” Question: Calculate the Level Annual Premium that results in an account value of 0 at the end of the 20th year.” – UW- Madison / Society of Actuaries
- [Bonk: Goal –> use a Universal Life policy to design a 20-year term policy.]