Unbundled

Unbundled

There are certain constraints which automatically bind a universal life
policy when you take this narrow approach.

The first one is that if, in fact, the policy is an unbundling of the reserve structure, the gross premium after removing policy loads (the premium actually deposited into the fund) must equal the valuation net premium.–Shane Chalke

1984 – NAIC UPDATE – 24 p, Society of Actuaries

“The “unbundling’ of services and other product differences between Universal Life and Ordinary Life cause current literature to be inapplicable, as well as insufficient, for Universal Life.”  
1984, American Academy of Actuaries – Journal 

 

Higher interest rates and inflation have reduced the market share for the traditional life insurance products. There appears
to be an “unbundling” of the insurance and investment features of the life insurance product. Level premium, whole life,
cash value insurance is giving way to a combination of term insurance with an investment element in short-term securities
or equities.
1983-2 REFERENCES

1988, PRODUCT UNBUNDLING STRATEGIES, Society of Actuaries