Non-Traditional Life Policies

T1-L2-P11

Non-Traditional Life Policies

Traditional policies are those with a:

  • Level premium,
  • Cash value, and
  • Endowment or maturity at age 100.

From the mid 1970's to the late 1980s, there was a revolution in the types of policies that were introduced. This change was generated by the radical interest rates that suddenly struck our economy.  The most notable new policy was the Universal Life plans and their variations.

The next screen shows a history of interest rates for over 800 years. The dividing line is 8%. These are the rates that prevailed in the major commercial powers of their time: Spain, Holland, France, and Britain. After 1700, it reflects the New World, America and Britain.