New Money 20

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

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

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

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