And yes, life insurance illustrations are broken for ALL types of life insurance- whole life included.

April 8, 2024 by Sheryl J. Moore

When I first purchased life insurance on myself, I couldn’t afford whole life, and so I purchased universal life (UL).

My agent explained that the amount of premium that I need to pay may change, as the credited rate on my policy changed.

Above all, he cautioned, I must always pay AT LEAST the sum of the insurance charges on my annual statement.

He further advised that I put much more money into the policy in the early years.

Given this experience, I take issue with Elan Moas‘ position on UL. Click HERE to read Clients With Universal Life Need Performance Updates: Elan Moas via Think Advisor by Allison Bell

I also take issue with a few points in this article.

Mortality on UL products is based upon the Commissioners’ Standard Ordinary (CSO) mortality tables, not census data.

Illustrations maturing at younger mortality ages are the responsibility (and perhaps failure) of the insurance agent.

As for “… many people who qualify to buy medically underwritten life insurance when they’re in their 40s will live into their 90s,” the last I checked the average age of mortality was 83 for men and 85 for women.

Yes, UL is flexible in nature and subject to tons of variables. It CAN be properly communicated though.

And yes, life insurance illustrations are broken. However, I would suggest that they are broken for ALL types of life insurance- whole life included.

Clients can avoid lapses later in life merely by funding their UL properly.

More than anything, I SERIOUSLY take issue with the citation that “ninety percent of these policies will never pay a death benefit.” WTH did that statistic come from? – SJM