Whole Life

Classic Enhanced Protection

Original line of business: North American Life

Updated on: Dec 13, 2018

Product snapshot

The Classic Enhanced Protection policy is a participating, whole life product with premiums payable to age 100. The enhancement on these policies are comprised of one year term insurance and paid up additions. Each year the one year term portion is decreased as the paid up additions increase to make up the initial amount of the enhanced coverage. Once crossover is reached (paid up additions exceed the initial amount) the coverage amount of the policy will begin to increase.

Basic product information

Product administration guide: N/A

Sample contract: N/A

Dividend options: Yes

Bonus: N/A

Dividend options


  • At issue the only dividend option available was the enhancement option
  • Dividends are declared on the basic amount and the paid-up insurance portion of the enhancement however the one year term insurance portion of the enhancement is non-participating
  • The one year term portion of the enhancement is not convertible
  • If the client requests a dividend option change before the cross over point, the enhancement amount (OYT) of insurance must be deleted
  • Once a new option is elected, the enhancement option cannot be re-elected
  • The dividend option can be changed at anytime. It is important to note that by doing so, the client will lose the enhancement and value builder rider if applicable. The customer must indicate in writing that they are aware that the coverage will be lost. The process will not be completed without this letter
  • If the owner wants to delete the enhancement, it must be requested in writing
  • The system still shows the plan as CEP, but the dividend option code on the system is changed 


The plan code will stay the same, but dividend option code will be changed to the appropriate dividend option



Premium paying period

Premiums are payable to age 100

Policy fees

No policy fee

Deposit load


Values, loans & withdrawals

Non forfeiture option: Yes

Loans: Yes

Withdrawals: Yes

Non-forfeiture option

Automatic premium loan (APL)


Loans are available


Dividends cannot be withdrawn in cash, transferred to another policy or applied to loan, unless the enhancement is deleted (all OYT is cancelled, regardless of amount withdrawn)

Cash value

Cash values are fully guaranteed

Reduced paid up

Client can elect reduced paid up at the end of the 20th year

Riders & benefits

Premium offset/holiday: N/A

Premium offset/holiday


Death benefit


Reinstatement period