The excerpts in this report focus on illustrated values for whole, universal, and variable life survivorship products from the leading companies in the market. And while these charts are only slices of the Full Disclosure database, they will give you an idea of how these products perform on a prospective basis.
An additional component in the latest edition of Full Disclosure is low-cost long-term guarantees of premiums and death benefits in flexible premium policies. A portion of our findings is included here as a table for leading universal life policies providing a minimum annual premium to age 100 or beyond with little or no cash value at maturity.
The new chart (see page 46) is based on two standard nontobacco insureds at various age combinations. Typically, we survey companies on a diverse range of combinations to get an idea what end of the market the policy is positioned, usually with an older male. This time, we turned one of the equations around and featured an older female to see what would happen. The results correlate closely for the most part, but for some companies (Phoenix and General American, for example) the results are surprisingly different between the older male comparisons and quite similar when the female is older. The female age 70/male age 65 premium is almost identical, while nearly $2,000 separates the male age 70, female age 70. As usual when comparing policies, nothing can be assumed.
In addition to the guaranteed premium chart, three others cover current illustrated values for variable, universal, and whole survivorship life. These illustrated values are based on current interest or dividend crediting, expenses, and in the case of variable designs a predetermined crediting rate. Full Disclosure applies the internal rate of return method to current illustrated accumulation values and current death benefits measured at policy durations of 30 years dependent on age combination. The IRR of cash values rise over time, as the IRR for the death benefits falls.