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Requests for Illustration Letters

Defined-Death-Benefit, Minimum Premium Policy Designs

Defined-Death-Benefit, Minimum Premium policy designs typically specify a defined death benefit and calculate the minimum premium required to support that death benefit. Premium calculations either solve for a minimum amount to be paid over the life of the policy, or for a higher amount to be paid over a shorter duration (e.g., a 10-pay plan). In all cases, premiums are a function of Cost of Insurance (COI) Charges, policy expenses as to Premium Loads, Fixed Administration Expenses and Cash-Value-Based "Wrap Fees", and assumed policy interest/earnings. However, while pricing for all policies are based on these pricing elements, different policy types can label and disclose these pricing elements differently. As such, you will find below Request for Illustration (RFI) letters specifically written for each policy type:

1. Variable Life

2. Universal Life

3. Whole Life