Index page for Product Features

Product Features

Some may think that there are too many insurance product features in the world to be summarized in one book. I partly agree with it: as long as one understand its principle, it is not hard to find out that all product features are in deed similar. They are only variation of cashflows (as we have introduced the generalized cashflow model).

The truly varying part of product features, can be summarized below:

1. Whether some roll-forward balance(s) are needed
2. The base of the payment (Premium or Face Amount or Underlying Items)
3. The conditions that payment will be delivered

However difficult, we will introduce some commonly seen product features (in Asia) below, including both Traditional Life (TL) and Universal Life or Unit Linked (UL).

Junior actuaries are always confused because they are not familiar with insurance product features, and they can only learn them through work or search them online. I hope this blog can summarize all the useful product features for you as a reference.

Index

TL product features

1. Introduction to Traditional Life (TL)
2. Return of Premium (ROP)
3. Waiver of Premium (WOP)
4. Dividend on Deposit (DoD)
5. Revisionary Bonus (RB)
6. Accelerated Critical Illness (ACI)
7. Multiple Claim Critical Illness (MCCI)
8. Mortgage Reducing Term Assurance (MRTA)

UL product features

9. Introduction to Universal Life / Unit-linked (UL)
10. Premium Holiday
11. Partial Withdrawal
12. Account Value
13. Crediting rate and Fund growth rate
14. Cost of Insurance and other deductions
15. Loyalty Bonus
16. Fee Income Approach