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Current illustration regulations require that policy values illustrated under the current assumptions of the insurer also be recalculated to reflect a guarantees-only projection as well as a midpoint projection for the stipulated funding premium. Another term of art for Universal Life policies is; "current assumption," suggesting that policy illustrations portray long-term results based on assumptions that are more favorable than those guaranteed in the policy. All elements of the policy's monthly administration are distinct and generally accounted for in an annual policyholder statement. One valuable feature of Universal Life policies is the transparency of expense charges and interest credits. When economic or market conditions allow, policies may receive an interest crediting rate that is higher than guaranteed, and may be charged a lower insurance expense than is scheduled in the policy. A Universal Life policy will provide for a minimum interest crediting rate (today's new policies may guarantee only 2 Vi - 3 percent) and a schedule of maximum insurance charges.

All things being equal, the second death life expectancy of a healthy couple is longer than the life expectancy of either individual. Early policies maintained separate mortality expectations for each spouse, but most Survivorship Universal Life policies today blend the mortality expectation into one table of insurance charges. Survivorship Universal Life insures the lives of two individuals - almost always husband and wife - and pays a death benefit at the latter of the two deaths, as long as the policy is in force when the second death occurs. As long as the result leaves a positive balance in the cash value account, the policy is considered "in force" until the next monthly reconciliation of premium, cash value, expenses, and credits. When a premium is paid, there are distinct debits for policy expenses (including premium loads, premium taxes, and other charges), and credits for interest as declared by the insurance company. For example, unlike Whole Life, policy owners could minimally fund their Universal Life policy during the family formation/lower-income years, begin to put in more money as increasing income allows, eliminate premiums entirely while paying for college educations, and then resume with robust premium funding during the higher-earning years preceding retirement. Universal Life policies are best used for policybuyers who are balancing the need for lifetime insurance and the desire to manage their premium flow. An alternative projection (using reduced assumptions) rarely recalculates a sufficient funding premium with those reduced assumptions. Note, however, that the alternative projections will be based on the premium calculated by the current projection or a premium otherwise chosen by the agent.