Whole Life

Adjustable Single Premium Whole Life 

Original line of business: Maritime Life

Updated on: Dec 12, 2018

Product snapshot

The Adjustable Single Premium Whole Life (ASPWL) product is a single premium, adjustable whole life product. The insurance coverage is adjusted every five years, subject to a guaranteed minimum, using the renewal rates in effect at the time.

Basic product information

Product administration guide: N/A

Dividend options: N/A

Bonus: N/A

Dividend options

N/A

Bonus

N/A

Premium paying period

Renewal dates 

  • Renews every five years
  • When a policy renews, if the coverage decreases below the original face amount, the policy owner has three options: 
    • Pay an additional single premium to maintain the original coverage, or 
    • Pay an additional single premium by loan to maintain the original coverage, or 
    • Accept the reduced coverage 
  • If a policy owner declines the opportunity to pay an additional single premium to maintain the original face amount at each renewal, subsequent options are no longer offered

Special "freeze" option: on the first renewal date following the 70th birthday of the life insured (or on the 10th policy anniversary, if later) the client can elect to freeze one of the options from the renewal notification

  • To elect this option, the owner must provide written notice within 31 days following the applicable renewal date 
  • After election of this option, the face amount will no longer be adjusted and future cash values are determined at that time  

Policy fees

The policy fee was $300/year, this has been reduced to no policy fee

Deposit load

N/A

Values, loans & withdrawals

Non forfeiture option: Yes

Loans: Yes

Withdrawals: N/A

Non-forfeiture option

  • Automatic premium loan (APL)

Loans

  • Available
  • The loan interest is at a variable rate

Withdrawals

N/A

Cash value

Available as per contract

Reduced paid up

Not available on this plan

Riders & benefits

Premium offset/holiday: N/A

Premium offset/holiday

N/A

Death benefit

Sum insured only

Reinstatement period

2 years

Convertible

N/A