Nearly half of life insurers polled in a new survey state they have re-priced universal life with secondary guarantee products during the year past.
Milliman Inc., Chicago, published this finding in a new study, “Universal Life and Indexed Universal Life Issues.” The report explores issues relative to universal life with secondary guarantees (ULSG), cash accumulation UL, current assumption UL and indexed UL (IUL) products.
Fourteen of 31 respondents to Milliman’s fifth annual comprehensive study of universal life and indexed universal Life issues reported they re-priced their UL with secondary guarantee in the last 12 months.
The study notes that nearly all the respondents reported that premium rates on the new basis versus the old basis increased.
Modifications to secondary guarantee products are anticipated by 15 participants in the next 12 months. Such re-pricing and modifications, the study says, may be driven by the fact that only nine of the survey respondents met their profit goals in 2010 and through the first nine months of 2011.