Universal Life

Architect Funding II

Original line of business: Aetna

Updated on: Dec 12, 2018

Product snapshot

Universal Life with death benefit and investment options.

Basic product information

Product administration guide: N/A

Sample contract: N/A

Dividend options: N/A

Bonus:  Yes 

Dividend options

N/A

Bonus 

Investment bonus:

An investment bonus is credited periodically to an account value only if the net fund value at the time is greater than or equal to 15 times the Architect minimum premium

At the end of each policy year, 0.75% of the net account value would be credited to each investment account

At the end of the 10th policy year, 10% of the investment return for the previous 5 years of each investment account would be credited in addition to the annual bonus.  This additional bonus will not exceed 5% of the net account value

At the end of the 15th policy year and every 5 years thereafter, 20% of the investment return during the previous 5 years of each investment account would be credited in addition to the annual bonus.  This additional bonus will not exceed 10% of the net account value 

COI fund bonus:

A COI fund bonus may be credited at the end of the bonus periods shown below only if the net fund value at the time is greater than or equal to 15 times the Architect minimum premium.  The COI fund bonus is not applicable if the death benefit option is "sum insured plus return of premium with interest" or "indexed sum insured".  The COI fund bonus is the accumulated value of 10% of the cost of insurance paid during the applicable bonus period, compounded annually by the earned rate

The initial bonus period begins on the policy date and ends on the later of the 20th policy anniversary or the policy anniversary on which the attained insurance age reaches 65

Subsequent bonus periods are 10 years from the end of the previous bonus period, except that the final bonus period ends on the policy anniversary on which the attained insurance age reaches 100

If there is more than one insured, the insurance age of the first insured named in the schedule will dictate when the bonus periods end

 

Premium paying period

Age 100 

Policy fees

$9.00/month

Deposit load

Varies by province

Values, loans & withdrawals

Non forfeiture option: Yes

Loans: Yes

Withdrawals: Yes

Non-forfeiture option

120 days grace 

Loans

Permitted against the value in money market or GIA. Minimum loan is $500.00 and the minimum remaining net cash value must be $500.00.  Maximum loan is 90% of the value in money market or GIA. Proceeds will be reduced by the amount of the loan balance 

Withdrawals

Permitted if policy cash value is more than $1000. Minimum withdrawal is $500.00 and the minium remaining net cash value must be $500.00.  If the death benefit is anything other than sum insured plus fund value, the sum insured will be reduced by the amount of the withdrawal. Subject to tax

Cash value

Yes

Reduced paid up

N/A

Riders & benefits

Premium offset/holiday: Yes

Premium offset/holiday

Payments can stop if there is enough value in the policy to cover the costs. Not guaranteed 

Death benefit

 

  • Level sum insured: the benefit paid at death is equal to the face amount or fund value, if greater, less any outstanding loan or negative fund value. Not available on multilife
  • Coverage plus: the death benefit is equal to the face amount plus the fund value less any outstanding loan. On a multilife or joint last to die plan, the fund value can be paid on each death or last death
  • Indexed sum insured: the death benefit is equal to the face amount plus the amount of the indexed coverage or fund value, if greater, less any outstanding loan and/or negative fund value. P/o can choose an index factor between 1% and 5%. The maximum death benefit is either the lesser of 3 x sum insured and $15 million or the fund value, if greater, less any loan
  • Return of premium with interest: the benefit paid is the sum insured plus the sum of all premiums paid (less withdrawals) + interest. The annual interest rate is specified by the p/o and fixed at the policy date or the date of the dbo change. The rate can be any whole number between 0% and 5%. Maximum db is either the lesser of 3 x sum insured and $15 million or the fund value, if greater, less any loan
  • Sum insured + adjusted cost basis (ACB). The benefit is equal to the sum insured plus the ACB

 

Reinstatement period

2 years

Convertible

No, this is a permanent product