Universal Life as Adjustable Life

  • 2021 - ACLI Fact Book - 234p
    • Universal life insurance:  A type of permanent life insurance that allows the insured, after the initial payment, to pay premiums at various times and in varying amounts, subject to certain minimums and maximums. To increase the death benefit, the insurance company usually requires the policyholder to furnish satisfactory evidence of continued good health.
      • Also known as adjustable life insurance. (p192)
    • Adjustable life insurance:  A type of life insurance that allows the policyholder to change the plan of insurance, raise or lower the policy’s face amount, increase or decrease the premium, and lengthen or shorten the protection period.  (p177)
  • This leads to the second attitude adjustment that is needed.
    • The old distinction between term and permanent is usually not appropriate for an adjustable life policy.
    • In every sense an adjustable life policy should be a permanent policy regardless of what the current static plan may be.
      • Its flexibility means that it can be the only policy a person ever owns even if the initial version corresponds to a ten-year term plan.
    • An adjustable life policy can be adjusted upward or downward in amount and/or premium to accommodate the needs and premium capa­bilities of the insured.
    • ⇒  It seems better to look at it in terms of what it can adjust to in the future rather than to concentrate on whatever plan today's premium/face amount relationship requires for defining values and dividends.
    • The emphasis should be on the basic permanent result that flows from the adjustability.

1976 - SOA - Toward Adjustable Individual Life Products, Society of Actuaries, by Walter L. Chapin - 50p

  • 1976 - SOA - Adjustable Life Products  (rsa76v2n44), Moderator: Robert E. Hunstad, Society of Actuaries - 14p
    • Moderator: ROBERT E. HUNSTAD. Panelists: JAMES C. H. ANDERSON, WALTER L. CHAPIN, WILFRED A. KRAEGEL, C. L. TROWBRIDGE
    • A discussion of existing and suggested life insurance products which adjust to changes in need for coverage and changes in ability to pay.
    • Introduction--An overview of adjustable products.
      • Paper: "Toward Adjustable Individual Life Policies" by Walter Chapin. - 1976 - 50p
      • Article: "The Universal Life Insurance Policy" by J. C. H. Anderson. - 1975 (originally) - 10p
      • Similarities and differences between the two approaches.
      • Current industry activity.
      • Problems and results--A view of the practical, applied level.