Whole Life
New Money 20
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
- Premiums and sum insured are level and guaranteed for the first 20 years
- At year 20, if no further premiums are required, the policy will remain at the current face amount and it will still be reviewed every five years
- If more premiums are needed at year 20, the policy will be reviewed every year thereafter
- If at year 20, premiums will be needed for life, the premium is increased by default
- This product is adjustable based on interest rates, mortality rates and expenses. The premiums are reviewed every 5 years based on these factors
- If interest rates decrease, then premiums may 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)
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:
1) Reduced paid up guaranteed
- Value is guaranteed not to change (no longer adjusted)
- Will be lower than the adjustable RPU
2) 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
- Sum insured is guaranteed for the first 20 years
- Sum insured can increase or decrease at adjustment dates depending on the option chosen by the client
- A minimum face amount is guaranteed in the contract to protect against extreme interest rate fluctuations
Reinstatement period
2 years
Convertible
N/A