Features

Features

The features that distinguish Universal Life from traditional whole life include premium payment flexibility, adjustable death benefits, and improved transparency.

2008 – A Layman’s Guide to Corporate-Owned Life Insurance
Rick Schnurr, Society of Actuaries

• 1984 – Life Insurance Buyer’s Guide <written primarily by the ACLI>
  • 1984-1995 NAIC Life Insurance Buyer’s Guide versions – Universal Life under “Combinations and Variations”/ “Special Plans”
    • Other policies <Universal Life> may have special features which allow flexibility as to premiums and coverage. Some let you choose the death benefit you want and the premium amount you can pay.  The kind of insurance and coverage period <Plan of Insurance> are determined by these choices. 

EF Hutton – 1st Seller of “Universal Life Insurance” – Description of Flexible Features Sun, Oct 11, 1981 – 37 · The Daily Oklahoman (Oklahoma City, Oklahoma) · Newspapers.com

Key Attributes of Generic Life Insurance Policies — Table 4-2

Duration of coverage – Universal Life – Depends on premiums paid

2015 – Life Insurance 15th Ed. – Black, Skipper, Black (Huebner Series) – page 111

2004 – Renewal Premiums and Discretionary Participation Features of a Life Insurance ,Contract: A Joint Research Project, ACLI / IAA, 52p

The foregoing is only one approach to the design of a contract with the desired characteristics.

There is ample scope for variations in the form of the term life insurance, the loading pattern, the accumulation process, the
availability of optional benefits and other features.

It should be noted that the suggested design can provide any conceivable pattern of premium payment and coverage and thus can replace all other products.

Hence, the Universal Life Insurance Policy.

1975 – The Universal Life Insurance Policy, James C. H. Anderson, Society of Actuaries

Market regulators should also be aware that sales of products, such as fixed-index annuities (formerly referred to as equity-indexed annuities) and index life insurance products (such as universal index life insurance) continue to increase.

These products typically include features that require an  understanding of bonuses, guaranteed elements and an array of interest-crediting methods.

In some cases, existing NAIC model laws and regulations may not give specific guidance on all aspects of all products.

In such instances, examiners may rely on general principles found in the NAIC Unfair Trade Practices Act and the NAIC Annuity Disclosure
Model Regulation.

2009-3, NAIC Proceedings

Overview of Universal Life Product Features

Fixed, indexed, and variable products

Flexible and fixed premium products

Persistency bonuses

Secondary guarantees (with and without shadow accounts)

Various types of reinsurance and the reinsurance reserve offset

2018 – A Comprehensive Look at U.S. Reserving Principles for Universal Life Insurance: Fixed, Indexed and Variable Seminar, Society of Actuaries