French: Some of the equity indexed universal life
and annuities products can be complicated for retail consumers; there are a lot of moving parts to them.
"Equity indexed universal life: The rest of the story," by David McKnight, July, p.
"Equity indexed universal life: The rest of the story,"" by David McKnight, July, p.
2006 2007 2008 2009 Term 94% 93% 88% 96% Universal life 71% 67% 66% 78% Whole life 62% 67% 60% 64% Key person life 37% 46% 41% 48% Variable universal life 27% 31% 27% 36% Single premium whole life 32% 38% 35% 30% Group N/A 28% 32% 28% Survivorship life 25% 31% 25% 27% Final expense 43% 52% 44% 25% Mortgage term 42% 33% 37% 25% Variable life 16% 19% 14% 20% Equity indexed universal life
29% 23% 24% 16% Impaired risk life 25% 16% 13% 11% CHART 4 Which type of life insurance do you sell the most?
Current Equity Indexed Universal Life
Policy Illustrated Values
But with the surge in equity indexed annuity sales came a sense that equity indexed universal life's time is near.
Marrion said he can't envision equity indexed universal life ever becoming more than a niche product with more than $3 billion in annual sales.
"If a couple of the large VUL players move into equity indexed universal life, it could tamp up the market quickly but like any new product line, sales would start slowly and grow," said Pfeifer, who consults with insurers on product development.
of Montpelier, Vt., should win a prize for their optimism about equity indexed universal life insurance.
Through its subsidiary, Life Insurance Company of the Southwest, National Life had equity indexed universal life insurance premium of $249,000 last year and $112,000 hi this year's first quarter, according to Advantage Compendium, a Missouri-based company that tracks index products.
To illustrate the policies, Old Mutual tracks the 30-year performance of the index based on the average annual gains of the tour purchase dates and the existing terms of the equity indexed universal life insurance contracts.
EQUITY INDEXED UNIVERSAL LIFE
insurance is starting to show some significant development activity, according to Tim Pfeifer, principal and consulting actuary at Milliman, Chicago.