Universal Life

Essential Solutions

Original line of business: Maritime Life

Updated on: Dec 29, 2018

Product snapshot

The Essential Solutions was a universal life product issued from 2003-2004 by Maritime Life. This product offered a guaranteed investment return at death, cancellation or lapse.

Basic product information

Dividend options: N/A

Bonus:  Yes 

Dividend options

N/A

Bonus

The Bonus Option is elected at issue and cannot be changed

An Investment Bonus is creidted on the 5th policy anniversary and every policy anniversary thereafter.  The investment bonus is the sum of the guaranteed bonus and the premium bonus

Guaranteed Bonus:

The guaranteed bonus is equal to the account value multiplied by the guaranteed bonus percentage.  The guaranteed bonus percentage varies by policy anniversary as follows:

        Policy Anniversary                    Guaranteed Bonus Percentage

                    5-9                                                        0.25%

                     10+                                                        0.50%

Premium Bonus:

The premium bonus is equal to the account value multiplied by the premium bonus percentage.  The premium bonus percentage for the first four policy anniversaries is zero.  For the 5th policy anniversary and every policy anniversary thereafter, the premium bonus percentage depends on the qualifying ratio as shown in the table below:

                Qualifying Ratio                        Premium Bonus Percentage

                    1.25-1.99                                        0.50%

                    2.00 or greater                            1.00%

The qualifying ratio is calculated as the sum of all Essential Solutions premiums paid excluding minimum premiums for riders, less the sum of all partial withdrawals since the policy issue date divided by the sum of the Essential Solutions minimum premiums due since the policy issue date excluding minimum premiums for riders

Beginning on the 10th policy anniversary and every policy anniversary thereafter, the qualifying ratio, and hence the premium bonus percentage, may increase but we guarantee that it will never decrease

Premium paying period

To age 100

Policy fees

$10.00 / month

Deposit load

2% guaranteed

Values, loans & withdrawals

Non forfeiture option: Yes

Loans: N/A

Withdrawals: Yes

Non-forfeiture option

120 days grace

Loans

N/A

Withdrawals 

  • The policy owner may make a partial withdrawal at any time
  • The minimum withdrawal amount is $500
  • If client is paying monthly, one month’s costing is held back
  • A market value adjustment may apply if funds are withdrawn from the GIA
  • Partial withdrawals are subject to tax reporting

 

Cash value

The cash surrender value of an essential solutions policy is equal to:  

  • The fund value, subtract
  • Surrender charges, subtract
  • Market value adjustment

 

Reduced paid up

N/A

Riders & benefits

Premium offset/holiday: Yes

Premium offset/holiday

Cash value must have a positive amount to go on premium holiday. Obtain a quote/illustration from Repsource

Death benefit

Level 

 

  • 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
  • Sum insured will be reduced by the amount of any partial withdrawals or disability payment benefit, including any associated partial surrender charges 

 

Coverage plus 

 

  • The death benefit is equal to the face amount plus the fund value less any outstanding loan
  • On a multilife plan, the fund can be paid on each death or last death

 

Reinstatement period

2 years

Convertible

Not allowed, this is a permanent product