• ''It seems to be growing now,'' said Daniel F. Case, an actuary for the American Council of Life Insurance, the trade association for the nation's life insurers, about this interest-sensitive product.
  • ''In my mind, it's a cross between a universal life policy and an adjustable-premium policy.''
• Universal Life
• Adjustable-premium (or indeterminate-premium)
• The original excess-interest whole life policies,,
• A second classification of excess-interest whole life soon developed, however, and it has become the bigger seller.
  • Often referred to as the vanishing-premium version, it provides for the possibility that premiums will be ended after not too many years.
• Such a situation, sometimes described as a paid-up policy, can occur because the premiums in the early years are set at a high enough level that the funds placed in an insured's account - augmented by the interest paid to the policyholder - are assumed to be sufficient to pay for future premiums.
  • And if investment results and other factors hold steady, premiums may soon be reduced to zero.
• As Mr. Case of the life insurance council noted, ''Premiums that have vanished may reappear later, if things start getting back down to modest interest yields.''

1984 0616 - NYT - Your Money: Insurers Offer Hybrid Policy, By Leonard Sloane - [link]