Premiums and Benefits – How Universal Life Works – Concept

— 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 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 – [PDF-991p-GooglePlay,

  • Universal life insurance is more flexible than whole life.
  • You can change the amount of your premiums and death benefit.
    • But any changes you make could affect how long your coverage lasts.
    • If your premiums are lower than the cost of insurance, the difference is taken from the cash value. If the cash value reaches zero, your policy could lapse.
  • The company will send you a report each year showing your cash value and how long the policy might last.
  • The estimate is based on the cash value amount, the cost of insurance, and other factors. Review it carefully.
  • You might need to pay more in premiums to keep the policy in effect until the maturity date.

tdi.texas.gov/pubs/consumer/cb018.html

  • Universal Life
  • Unlike adjustable life, where a current plan is defined, but is subject to change, a universal life policy at any time has only a “minimum” and a “maximum’ plan….
  • The adoption in 1983 of the Model Regulation for Universal Life provided recognition that these policies could be configured as whole life policies.  (p662)

1989-1, NAIC Proceedings