Whole Life

Dividend T100

Original line of business: Aetna

Updated on: Dec 13, 2018

The Dividend T100 product is a participating, permanent term product with a pre-set enhancement dividend option. Premiums were guaranteed level and payable for life. The Coverage amount is guaranteed for 20 years, regardless of dividend performance.

Dividend options: Yes

Bonus: N/A

Dividend options


  • Each year, the dividend is first used to purchase one-year term insurance to cover the portion of the enhanced coverage, more than the paid-up additions purchased to date
  • The one-year term portion of the enhancement is not convertible
  • Any remaining dividend is used to purchase paid-up additions
  • The enhanced coverage amount purchased by the dividends is guaranteed for 20 years
  • The policy has a built-in "buffer" to safeguard against small dividend scale decreases
  • The adjustment date is the policy anniversary following the 20th policy year
  • On the adjustment date and every 5th anniversary thereafter, a calculation is performed to determine policy value and dividend scale in effect, along with the premium, is sufficient to maintain the sum insured to the insured's age 100 
  • The sum insured will never fall below the guaranteed minimum amount plus the amount of the paid-up additions if premiums continue to be paid



Premium paying period 

  • Premiums are guaranteed level and payable to age 100
  • If after 20 years, the coverage is reduced due to the dividend scale, the client has the option of increasing the level premium to maintain the original face amount 
  • The policy will become paid up at age 100 or sooner depending on the dividend scale  

Policy fees

1995 and 1997 rate series: 

  • $75.00 single life
  • $50.00 per life for multiple lives

Deposit load

N/A (all costs are built into the premium)

Non forfeiture option: Yes

Loans: Yes

Withdrawals: N/A

Non-forfeiture option

Extended lapse protection

  • Available at the end of the second policy year
  • Extended grace period of 120 days    

Extended term insurance (once the policy has cash values)

  • If a premium remains unpaid at the end of the extended grace period (120 days), extended term insurance is automatically elected after there is policy value.  All riders will be terminated
  • After the policy has been on ETI, premium resumption is permitted without medical evidence within 12 months of the first missed premium and with medical evidence thereafter. All back premiums would need to be paid with interest.  All coverages, including riders, will be reinstated, if applicable 

At the end of the extended term insurance (ETI) period, the policy will lapse. Reinstatement with evidence is permitted within 24 months of the date of lapse


  • Available at the end of the 20th year when cash values begin
  • Maximum loan is 85% of the net cash value 



Cash value

  • Cash values are available at the end of the 20th year
  • An "as is" illustration can be requested for a projection of the cash values

Reduced paid up

Available after the 20th policy year

Premium offset/holiday: Yes

Premium offset/holiday 

  • Vanishing premium feature may be elected 
  • No further premiums are required when the total policy value and the dividends are sufficient to fund the sum insured to the life insured's age 100 
  • If the client elects to pay premiums beyond the vanishing premium date, the sum insured will increase through the purchase of paid up additions

Death benefit

  • The sum insured is made up of a minimum guaranteed coverage amount plus an enhanced coverage amount
  • The minimum coverage amount is guaranteed for life
  • The enhanced portion is made up of a combination of one-year term insurance and paid-up additions
  • These two components show as two layers of coverage:
    • The guaranteed minimum coverage 
    • The enhanced coverage

Reinstatement period

2 years


No, already a permanent product