The more volatile the returns, the more important the randomization/probability analysis. Therefore, Variable Universal Life and Joint Lives Variable Universal Life utilize a “Monte Carlo”-like process. Universal Life and Joint Lives Universal Life policies experience crediting rate volatility (as well as the possibility of future changes in COI charges) in a less volatile and more progressive manner. Insurance SolutionsTM Reports employ historic movements in fixed return investments in order to estimate the probability of premium sufficiency.

Similarly, Whole Life and Joint Lives Whole Life policies issued by Mutual insurers have dividends that can either enhance a full-pay policy or potentially serve as a future premium resource. Dividends are inclusive of claims experience, carrier investment return, expenses, taxes, and profits, and therefore those dividends can be expected to change from time to time. Similar to the processes used for Universal Life, Insurance SolutionsTM Reports employ historic movements in fixed return investments in order to estimate the probability of premium sufficiency.