• Waiver of Monthly Deductions for Flexible Premium Universal Life Insurance Policies
• 14. Flexible premium universal life insurance policies do not require specified premiums as traditional policies do.
  • The “waiver” benefit entities offer is a “waiver of monthly deductions” benefit as opposed to a “waiver of premium” benefit.
  • The difference being specific premiums may or may not be required under the policy regardless of whether the insured is disabled or not.
    • Waiver of a deduction is not to be considered revenue nor a benefit paid, therefore a calculation of the amount of the deduction need not be made for flexible premium universal life insurance policies.

Statement of Statutory Accounting Principles No. 51 - 12p
Life Contracts
STATUS
Type of Issue: Life, Accident and Health
Issued: Initial Draft
Effective Date: January 1, 2001
Affects: Supersedes SSAP No. 80 with guidance incorporated November 2011
Nullifies and incorporates INT 00-30, INT 01-26
Affected by: No other pronouncements
Interpreted by: INT 00-03