Plan of Life Insurance

Broken down to its simplest basis, Universal Life has eliminated the concept of “plan of insurance”….. 

— Christian J. DesRochers

1983 – Universal Life, Society of Actuaries – 24p

Section 2. Purpose
A. The purpose of this regulation is to require insurers to deliver to  purchasers of life insurance information that will improve the buyer’s ability to select the most appropriate plan of life insurance for the buyer’s needs and improve the buyer’s understanding of the basic features of the policy that has been purchased or is under consideration.
Life Insurance Disclosure Model Regulation, MDL-580 – <link> I guess my problem can be stated thus: how can you emphasize that the guaranteed plan of insurance may be term to age 65 but then say it is all right to ignore that and take a whole life expense allowance calculated at a low interest rate because the plan is sold as whole life?  —  JEFF T. DUKES
1983 – UNIVERSAL LIFE VALUATION AND NONFORFEITURE: A GENERALIZED MODEL, Society of Actuaries

Drafting Note: The drafters chose a whole life initial expense allowance for several reasons. Although highly flexible, universal life insurance is generally considered a permanent life insurance plan.

Most companies encourage a premium level which will provide lifetime insurance protection.

Every universal life insurance policy of which the drafters are aware has a “net level premium” that could be computed which would guarantee permanent protection.

As a result, it is expected that most universal life insurance policies will be sold as permanent plans.

Universal Life Insurance Model Regulation, MDL-585 – <link>

 

Plans of insurance fall into five categories: term, limited pay whole life, continuous premium endowment, limited pay endowment, and income endowment where the ratio of amount of insurance to maturity value may be varied.
1976 – Toward Adjustable Life Products, Walter L. Chapin, Society of Actuaries Defining the principal elements of a policy as amount of insurance, gross premium, and plan of insurance, an original issue involves election of any two of the elements and calculation of the third. Each change after issue involves a change elected for one element, either a change or continuation
for a second element, and calculation of the third element.

1976 Toward AL Plan Solve 123 2

The guaranteed maturity fund at any duration is that amount which, together with future guaranteed maturity premiums, will mature the policy based on all policy guarantees at issue.

(C) is the quantity ((a)-(b))ax+t r where (a)-(b) is as described as

in [insert reference to Section 4 of the Standard Valuation Law] for the plan of insurance defined at issue by the guaranteed maturity premiums and all guarantees contained in the policy or declared by the insurer.

NAIC – UNIVERSAL LIFE INSURANCE MODEL REGULATION – {link]

 

U.S. Department of Veterans Affairs

https://www.benefits.va.gov/insurance/plans.asp

Plans of Insurance

Government Life Insurance is issued in a variety of insurance plans. Select a plan below to view a brief description of that plan. This information is for policy numbers beginning with K, V, RS, W, J. JR. JS and RH. Information for: Servicemembers’ Group Life Insurance policies (SGLI) and Veterans’ Group Life Insurance policies (VGLI).

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