UL ISL

Accelerated Term

Original line of business: Maritime Life

Updated on: Dec 11, 2018

Product snapshot

The Accelerated Term product is a 5-year adjustable product that is non-participating. Premiums can be direct or stepped. This policy does have cash values at surrender.

Basic product information

Sample contract: N/A

Dividend options: Yes

Bonus: N/A

Dividend options

This policy is non-participating

Bonus

N/A 

Premium paying period

Direct premiums 

  • Direct premiums are paid for the duration of the contract and are subject to adjustment every five years 

Stepped premiums 

  • Stepped premiums are graded up over four years in increasing percentages of the lifetime premium 

The fourth year stepped premium is payable for the duration of the contract and subject to adjustments every five years 

Adjustments 

  • At the end of each five-year period, benefit costs are determined for the following five-year period. If benefit costs increase, there may be a premium increase. If benefit costs decrease, there may be a coverage increase
  • The policy owner is under no obligation to pay an increased premium if requested and may elect, in writing, to maintain a lower insurance amount with no increase in premium. If the policy owner chooses not to pay the increased premium and does not request a reduced face amount, coverage will be continued at the current amount for a period and then expire 

Policy fees

$75.00 annually

Deposit load

Verify in policy contract

Values, loans & withdrawals

Non forfeiture option: Yes

Loans: Yes

Withdrawals: N/A

Non-forfeiture option

Extended coverage provision  

  • Extended coverage is the automatic non-forfeiture option
  • After a certain number of years (depending on the age at issue), extended coverage will take effect automatically as soon as the grace period has expired
  • Duration of the extended coverage will depend on the number of premiums already paid
  • The policy owner can resume normal premium resumption without repaying missed premiums 
  • Rate series '84:  
    • The policy can go on extended coverage if the accumulation amount is sufficient, meaning it is equal to or greater than one ongoing basic annual premium
  • Rate series '86,'87,88 
    • The policy can go on extended coverage if the cash option amount is sufficient 
  • The policy will expire immediately if the cash option amount becomes negative 

Please note: renewal notices are not generated while on extended coverage 

Reduced paid-up option 

  • After the tenth policy anniversary, the policy owner may elect, in writing, to pay no further premiums and have a paid up policy for a reduced face amount 
  • Any loan amount must be paid in full before requesting RPU 
  • The client can select either current or guaranteed rate for RPU 
  • The coverage is reduced to an amount that is projected to last for life based on future interest rates and assuming no further premiums. The YRT cost continues to be deducted from the accumulation account. The contract specifies that future premiums may be required and that the reduced coverage amount is based on a projection 

Loans

Loans are available  

Withdrawals

Withdrawals are not available 

Cash value

If available, verify in policy contract

Reduced paid up

Available after the tenth policy anniversary, the policy owner may elect, in writing, to pay no further premiums and have a paid up policy for a reduced face amount. To obtain a reduced paid up quote run an "as is" illustration and request reduced paid up quote in the additional comments section

Riders & benefits

Premium offset/holiday: N/A

Premium offset/holiday

N/A

Death benefit

Basic coverage only (level)

Reinstatement period

2 years

Convertible

Already in a permanent coverage