Full Disclosures Survivorship Life Report
A key to a competent product analysis is knowledge of what each product is designed to do–its “ideal purpose” if you will.
This may seem like a simple fact, but one overlooked routinely. For example, an advisor brought into a large case may have to choose among many proposals with illustrations galore. To someone looking at illustrated values alone, price may win the day without consideration of the other policy dynamics in play. This is particularly true in big-ticket survivorship life sales where annual premiums may vary by tens of thousands of dollars.
Because policies are designed for specific outcomes we usually run a Product Strengths section in these excerpts from Full Disclosure that includes editorial comment from participating companies. In this report, however, we have standardized some of these answers, and added them to a section of the regular report known as Product Objectives, which are also repeated here.
While not all of a products design objectives may be listed, you can see what market many of these policies are meant for. Some are built for low premiums, for example, while others are meant to generate major league cash values.
Extending the issue of the product objective is the fact that a policy may be intended for a purpose and market as remote from illustrations as you can imagine. For example, it may have broad underwriting classes so more policies are issued preferred, or it may be oriented to business applications with appropriate features. If there is little detail for a policy in the Product Objectives section that doesnt mean its a non-performer. Chances are its designed as a middle-of-the-road product for wider markets. Certain companies specialize in “uninsurable” lives, while others build their variable products around a huge selection of subaccounts.
You will notice in the variable survivorship life chart there is a new column with the number of available subaccounts for each one.
Twice a year the editors of Full Disclosure compile the life insurance industrys largest survivorship life insurance product database. Our research includes complete policy specifications and features, current and guaranteed costs and expenses, and a wide sampling of illustrations.