Description: This paper discusses the issues of an independent actuary providing product development, or more accurately sales development, services to a life insurance company. The author explores the process, and proposes “compensation to the entrepreneurial actuary who accepts the challenge of operating in a setting where true success is not measured by isolating theoretical profit margins or business sold, but rather focusing attention on the unfolding experience of what is hopefully to be truly profitable policies.” Instead of basing the actuary’s compensation on time spent, the author is suggesting compensation based on results.

Description: A nationally recognized market research firm recently conducted a consumer survey pertaining to income term life insurance. Income term life insurance offers a death benefit which includes an upfront-specified income stream, commencing upon death of the insured during the term period, to a surviving beneficiary until (a) a predefined date or (b) death of the beneficiary. This article provides an overview of the results of the survey.