Problem – As Long as You Pay the Premium

  • Permanent (cash value) life insurance pays the beneficiary whenever the insured dies, as long as premiums have been paid. (p38)

2016 11 – FIO (Federal Insurance Office) – Report on Protection of Insurance Consumers and Access to Insurance – 58p

Life insurance is available in two basic types: term and permanent (which includes whole life, universal life, variable life, and variable universal life). 205  – ACLI 

  • After receiving these notices, John [Policyowner] contacted Glasgow [Agent] who had retired in 2000, to inquire why his policies would be terminating, even though he had timely paid the premiums on the policies for approximately 18 years.  (p4-5)

2010 – LC – Maloof v. John Hancock Life Ins. Co. –  60 So. 3d 263 – Alabama Supreme Court Opinion  —  [BonkNote]  —  39p  

  • Let’s review the basic mechanics of Universal Life.
  • The policy does not lapse if a premium is not paid;
    • rather, it lapses if the fund balance becomes too small to pay the next month’s cost of insurance. 

—  Ben H. Mitchell, [Bonk: a consulting actuary with Tillinghast in Atlanta – Years-?]

1981 – SOA – Universal Life (RSA81V7N412), Moderator: Samuel H. Turner, Society of Actuaries – 16p