New life product reflects TIAA-CREF's new approach.

TIAA-CREF Life Insurance Co. has launched a new variable universal life product reflecting its revamped approach to designing and selling life insurance. But without a commission-based agency sales force, getting people to buy the product, particularly those unfamiliar with the parent organization's investment experience, may be a challenge.

About 95% of all life insurance premium is sold through commission-based agents, said Bret L. Benham, appointed president and chief executive officer of TIAA-CREF Life in June.

TIAA-CREF Life is part of the Teachers Insurance & Annuity Association-College Retirement Equities Fund, a U.S. retirement system for people working in the academic, research, medical and cultural fields. With more than $380 billion in assets, TIAA-CREF serves 3.2 million people at more than 15,000 institutions.

But the 87-year-old TIAA-CREF's share of its market--once close to 100%--is now an estimated 70%.

In June, Benham, 46, took the title of president and CEO of the life company from Bertram L. Scott, now TIAA-CREF's executive vice president for strategy, implementation and policy. Best's Review met with Benham, visiting from Charlotte, N.C., at TIAA-CREF's corporate headquarters in New York.

Among the projects he's focused on is the company's new variable universal life insurance product, dubbed "Intelligent Life," launched in June. The new variable universal life product offers more investment choices, easy-to-understand product design and greater flexibility, according to a press release. "You understand what's in there--where the charges are and where the charges aren't," Benham said.

The company is targeting its core market--educators, said Benham, who also serves as senior vice president for insurance and financial protection products for TIAA-CREE The company can take advantage of the parent organization's strengths--a loyal retirement plan participant base and its hallmark investment capabilities, he said.

But it also is expanding more aggressively to the general public through Financial intermediaries. "It's certainly something that's not going to happen out of the box," he said.