Whole Life

New Money 10

Original line of business: Aetna

Updated on: Dec 14, 2018

Product snapshot

The New Money Life is a non-participating, adjustable premium, whole life product.

Basic product information

Product administration guide: N/A

Sample contract: N/A

Dividend options: N/A

Bonus: N/A

Dividend options

N/A

Bonus

N/A

Premium paying period

This product is adjustable based on interest rates, mortality rates and expenses. The premiums are reviewed every 10 years based on these factors 

  • If interest rates decrease, then premiums be increased at the next adjustment
  • If interest rates increase, then premiums may be decreased at the next adjustment

Policy fees

If applicable noted in policy contract

Deposit load

N/A

Values, loans & withdrawals

Non forfeiture option: Yes

Loans: Yes

Withdrawals: N/A

Non-forfeiture option 

  • Automatic premium loan (APL)
  • Extended term insurance after 5th year  

Loans 

  • Loans are available on 85% of the current cash value
  • Not available on a reduced paid-up policy as there is no cash value 

Withdrawals

N/A

Cash value

Policy has cash value that varies depending on interest rate and coverage amounts. If the client chooses to have a reduced paid up policy, they no longer have access to the cash values in the policy, meaning no value at time of surrender

Reduced paid up 

  • The minimum face amount for RPU is $2,500.00 
  • Any outstanding loans must be repaid before changing the policy to reduced paid up  

There are two types of reduced paid-up: 

  • Reduced paid up guaranteed
    • Value is guaranteed not to change (no longer adjusted)
    • Will be lower than the adjustable RPU 
  • Reduced paid up adjustable (new money)
    • Face amount is subject to adjustments every 5 years
    • Face amount can increase or decrease and is not guaranteed

Riders & benefits

Premium offset/holiday: N/A

Premium offset/holiday

N/A

Death benefit

Base coverage only 

(Please note that the death benefit can increase or decrease at adjustment dates depending on the option chosen by the client)

Reinstatement period

2 years

Convertible

N/A