Whole Life

New Money 5

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 5 years based on these factors
    • If interest rates decrease, then premiums may increase at the next adjustment
    • If interest rates increase, then premiums may decrease 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 paidup  

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

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