Whole Life

Future Enhanced Protection

Original line of business: North American Life

Updated on: Dec 11, 2018

Future Enhanced Protection (FEP), is a unique participating whole life plan under which the dividends are used to provide additional life insurance known as the enhancement with premiums payable to age 100. 

Product administration guide: N/A

Sample contract: N/A

Dividend options: Yes

Bonus: N/A 

Dividend options 

  • Enhancement
  • At issue the only dividend option available is the enhancement option
  • Dividends are declared on the basic amount and the paid-up insurance portion of the enhancement
  • The one year term insurance portion of the enhancement is non-participating
  • The one year term portion of the enhancement is not convertible
  • Dividends are declared annually at the end of each policy year commencing not later than the end of the third policy year  

If the client requests a dividend option change before the cross over point: 

  • The enhancement amount of insurance (OYT) must be deleted
  • Once a new option is elected, the enhancement option cannot be re-elected
  • They can only use dividends to pay premiums, if the policy can be set up on premium offset
  • Before advising the client that they can use dividends to pay a premium, you must request an earliest offset illustration



Premium paying period

Premiums are payable to age 100 

Policy fees


Deposit load


Non forfeiture option: Yes

Loans: Yes

Withdrawals: Yes

Non-forfeiture option

Automatic premium loan (APL)




Dividends (enhancement) cannot be withdrawn in cash, transferred to another policy or applied to loan or premium, unless the enhancement is deleted 

Cash value

This policy has guaranteed cash values

Reduced paid up

Can go RPU at the end of the 20th policy year

Premium offset/holiday: N/A

Premium offset/holiday


Death benefit


Reinstatement period