Full Disclosure surveys leading insurers selling universal life twice per year. There are, it seems, more products than ever to cover with a dominant trend being multiple products with different design objectives from a single company. Some insurers may name the policy after the mission”Accumulator” or “Protector” spring to mind. Most UL carriers now offer a guaranteed minimum premium option on at least one of their UL products that guarantees the premium and death benefit to age 100 or for life.
There are 2 charts in this report. Both are excerpted from the most recent UL edition featuring 84 policies for sale on July 1, 2004. The larger chart includes illustrated values on a current basis, and the second breaks out minimum premiums necessary to guarantee the premium and death benefit to age 100 or for life.
Current illustrations are based on a Male Age 40 with a best nonsmoker class (representing at least 15% of the contracts issued) paying a $7,500 annual premium and a $1 million policy. If our specified premium of $7,500 is too low to illustrate the policy for this age and face amount, the policies are blended with term insurance if available. The death benefit type is level; however, a column is included with a true increasing death benefit for each policy.
The other table features the minimum premiums needed for long-term guaranteed premium and death benefit. Whether by rider, a minimum premium level or automatically, mechanisms to include the guarantee differ. Other guarantee variations include duration, pre-payment discounts and other nuances that help differentiate products in a crowded marketplace and serve individual customer needs (in addition to making the jobs of product wholesalers a little more exciting). If a policy is not also featured in the minimum guaranteed premium chart, they do not offer a long-term secondary guarantee but may offer shorter guarantee durations as specified in the main chart featuring illustrated values.