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It is both the most complicated and the least flexible - yet at the same time perhaps the most simple - life insurance policy developed to date. Guaranteed premium offerings include Whole Life, the initial duration of term insurance, Current Assumption Whole Life, and No Lapse/Secondary Guarantee Universal Life. major distinction that should be made with today's high-tech policies is whether there is a specific, guaranteed premium. Filling the box is better known as permanent or cash value life insurance and, more specifically, is implemented through Whole Life and the newer Universal and Variable Universal Life policies that enable premium management and also shift the risk of financial management to the policy owner. However, when the need for life insurance is long, indeterminate, or lifetime, it makes sense to approach the program by filling "the box," because paying the curve will become disastrously expensive. When the need for insurance is of short duration - typically 15 years or less - it makes sense to "pay the curve."

Higher returns suggest lower contributions; lower returns suggest higher contributions. Whether paid in one lump or paid over time, what you pay will be a function of the present value of future anticipated mortality charges, accounting tor an estimate ot how much interest will be earned on your money. While most of us would prefer to put a predictable, level amount of money into the account each year, others might want to pay it all in one lump sum or pay it in over a relatively short period of time. From 37 to age 80, he or she will pay approximately $750,000 for annually renewable term insurance (the closest analogue to annual probabilities of death). On the basis of current life expectancies, a 37-year old has an equal chance of surviving or dying by age 80. Rather, you're going to want to put your contributions into some kind of investment box that - depending only on administrative expenses and how much you can earn on your money - will make certain that your mortality expenses are always covered, regardless of when death occurs.

If you need life insurance for more than a relatively short period of time, you probably won't want to play the odds so far described. To better manage the long-term mortality costs, actuaries determined that if you put this much money in The Box, it will pay all of the mortality costs during your entire life. Two standards of deviation (age 96) suggests a cumulative cost of 330 percent of the ultimate death benefit. If the 37-year old manages to live to one standard deviation beyond his age group's life expectancy (age 90) and continues to pay the premium, the cumulative cost for life insurance will be 190 percent of the ultimate death benefit.