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Universal Life's Growth No Surprise

June 19, 2008

Analysis of:Only Universal Life Sales Show Growth in the First Quarter in 2008, LIMRA Reports | www.insurancenewsnet.com

Purchasers with a permanent need for large amounts of life insurance coverage to fund estate liquidity or business succession requirements are turning more and more to the Secondary No Lapse Guaranteed Universal Life product. The traditional guarantees of Whole Life are provided by this product at an annual cost savings of 25-40% depending on age and health of the insured. This product does not pay a dividend; and, depending on the product chosen, does not generate significant cash surrender values. It does exactly what it was designed to do - delivers a guaranteed death benefit in most instances, through age 120. Individual consumers with large life insurance requirements, in our experience, generally do not care about anything other than the financial strength of the issuing carrier and the viability of the product design, not the cash value. Cash value enhancements are available via policy rider where there is a corporate purchaser and earnings impact concerns.

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