Report on the Survey of Conversion Assumptions and Product Features for Level Premium Term Plans

The Reinsurance Section, Product Development Section and the Committee on Life Insurance Research announce the release of a new report on term conversions. Lindsay Meisinger, Donna Megregian, and Derek Kueker conducted a survey of US life insurers on the assumptions and product features used for pricing and administering term conversions.  For purposes of this study a term conversion is when an individual term insurance policyholder exercises the option to convert to a permanent plan without underwriting. This report summarizes the results of the survey.

The survey is the first phase of a multi-phase project. The Phase 2 report is also complete and consists of an experience analysis of level term business as it transitions into the converted policy.

The Sponsors would like to thank the companies that participated in the study and the following individuals who served on the Project Oversight Group:

Tom Edwalds, Chair

Christine Chui

James Filmore

Jean-Marc Fix

Sebastian Kleber

Vera Ljucovic

Dave Moran

Michael Palace

Tony Phipps

Yana Shergina

Jack Luff, SOA Experience Studies Actuary

Ronora Stryker, SOA Research Actuary

Jan Schuh, SOA Sr. Research Administrator


If you have questions or comments on this research, please contact Ronora Stryker, SOA Research Actuary, at rstryker@soa.org.