Updated May 8, 2024, at 4:25 PM

A recent study asked consumers to rate the importance of various factors when purchasing life insurance. Having a product that is “easy to understand” received top ranking.

So how do we make life insurance easier to understand?

A key improvement would be to underwrite a schedule of net insurance amounts rather than a face amount. This allows fairly predictable cost disclosure and simpler risk management by not increasing the net amount at risk (NAR) when the account value is less than planned. It also allows the protection portion of the policy to be tailored to funding options and the transition into retirement.