• Universal Life Modeling Example
• Funding Levels 
  • Universal life plans offer the policyholder great flexibility in their use of the plan -- from a term plan to an investment vehicle.
• The funding level affects:
  • 1. Universal life commissioners reserve valuation method reserves -- In particular the r factor is the ratio of the actual fund value to the guaranteed maturity fund.
  • Since r is capped at 100%, using a ratio based on the average fund for all policies may not produce the actual reserve.

1994 - SOA - Valuation Actuary Symposium - Session 8 - Life and Deferred Annuity Liability Models - Society of Actuaries - 32p