Writing a Life Insurance Policy

Abstract

The critics of the life insurance contract are legion; the writers are few. The experience of one who, from the ranks of the legion, was propelled into the ranks of the few, is one which should be shared with others. It cannot be shared by having each join in, writing a contract; it can be shared by retracing a project recently completed by The Northwestern Mutual Life Insurance Company. The current NML contract, introduced last year, was not written overnight. Its writing started with the writing of the Company's first policy. That contract served the needs of its day. It was modified from time to time, each modification informing, explaining, fitting the current needs and each a step forward. This may seem to be a real advantage and suggest that the job is a snap-just take the old, review the criticisms, touch it up, and let it go. In truth it is a real disadvantage. It is a source of frustration stemming from tradition, language, and legal procedure in the courts. In addition there is the need to produce not simply a contract that will satisfy one's associates, it must also satisfy the policy reviewers of every state in which the company operates. Some are liberal and will accept change; others are considerably less liberal. Some go far beyond the spirit of the law and insist on specific wording. One might say they go even beyond the letter of the law.