Single Premium Whole Life

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Product Features

SPWL is a non-participating single premium whole life insurance product. It is designed especially for individuals who wish to:

  • reallocate a portion of their assets to increase their estate;
  • provide an inheritance to their beneficiaries that is income tax-free;
  • avoid the costs, delays, and publicity of probate;*
  • access the death benefit for qualified illnesses while living;
  • access the cash value during a time of financial emergency

Assets ideal for transfer using SPWL are funds individuals seek to pass onto their beneficiaries and are not earmarked for daily living expenses. The policy’s death benefit and cash values are guaranteed for life. This policy offers two-tiered simplified underwriting for maximum eligibility. SPWL offers the policyowner liquidity features including a Living Benefits rider.

* To avoid probate, the beneficiary designation must be properly structured.

Living Benefits Rider

There are three major living benefits available under the policy rider (Accelerated Death Benefit Rider, Form 8014). The rider is not available in all states.

Terminal Illness

  • The owner may elect to accelerate up to 100% of the death benefit if the insured is diagnosed as Terminally Ill with a life expectancy of up to 12 months.
  • The amount payable to the owner is the elected portion (or all, if elected) of the death benefit multiplied by a specified percentage of 95% and reduced by an administrative charge of $250.00.**

Qualified Nursing Facility

  • The owner may elect to accelerate up to 100% of the death benefit if the insured is diagnosed as chronically ill and confined to a Qualified Nursing Facility continuously for at least 90 days with the expectation the confinement will be permanent.
  • The amount payable to the owner is the elected portion (or all, if elected) of the death benefit multiplied by a specified percentage of 90% and reduced by an administrative charge of $250.00.**

Extended Care

  • The owner may elect to accelerate up to 100% of the death benefit if the insured requires Extended Care, such as home healthcare, adult day care, and other qualified care.
  • Extended Care means the insured is chronically ill, has been so continuously for at least 90 days, and requires care provided by a licensed home health care agency or by a licensed or state-certified adult day care center (or is otherwise receiving formal care).
  • Chronically ill means that the insured:
    • is unable to perform, without substantial assistance from another person, at least two out of six activities of daily living which are (1) eating; (2) toileting; (3) transferring (i.e., moving into or out of a bed, chair, or wheelchair); (4) bathing; (5) dressing; and (6) continence; or
    • suffers from a severe organic mental illness
  • The amount payable to the owner is the elected portion (or all, if elected) of the death benefit multiplied by a specified percentage of 80% and reduced by an administrative charge of $250.00.**

**The rider is not available in CT, MA, or OR. The specified percentages and administrative charge may vary by state. Rider details are available in the Agent Guide, Form 8022

Additional Product Specs

Underwriting Advantage
SPWL offers two underwriting classes. Applicants may be eligible for one of the two underwriting levels depending on their state of health.

  • Standard: Standard risks through Table 4 (Table D / 200% of standard)
  • Special: Risks from Table 5 through Table 8 (Table E 225% of standard - Table H / 300% of standard)

Issue Ages for Policy and Living Benefits Rider
Ages 50-85 (age last birthday)

Minimum Face Amount
The death benefit $5000 single premium will purchase.

Maximum Face Amount
$150,000 net amount at risk. Prior home office approval is required for single premiums greater than $500,000.

Death Benefits
SPWL has a guaranteed death benefit for all policy years. The net death benefit may change due to an outstanding loan or partial surrender.

Loans
The maximum loan is an amount that, with interest to the end of the current policy year, will not exceed the net cash value at the end of that current policy year. Loan interest will not exceed an annual rate of 8.00%. The minimum loan repayment is $25, unless the loan balance is being fully paid.

Partial Surrender
A partial surrender can be exercised at any time after the first policy year. The minimum partial surrender benefit is $500. The maximum partial surrender benefit is the lesser of 1) the available partial surrender amount, less $5,000, or 2) the available partial surrender amount multiplied by the applicable percentage as follows:

Year 1: 0%Year 4: 30%
Year 2: 10%Year 5: 40%
Year 3: 20%Year 6+: 100%

Sample Rates

Sample Rates for Single Premium Whole Life
$50,000 Premium, Standard Underwriting Class, Non-Tobacco

  Age 60Age 65Age 70Age 75
Male$90.57980,38572,15064,184
Female$104,16690,90980,51570,028

$50,000 Premium, Special Underwriting Class, Non-Tobacco

  Age 60Age 65Age 70Age 75
Male$85,03474,73866,57758,685
Female$98,03985,03474,73864,350

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