WHOLE LIFE PLANS

Interest-Sensitive Whole Life- interest-sensitive whole life insurance provides lifetime coverage on the insured, just as traditional whole life. However, in addition to a minimum guaranteed rate of interest, the policy receives current interest based on the insurance company’s investment portfolio. Most policies require continuous premium payments throughout the lifetime of the insured. For policies that have cash values accumulated, a non-forfeiture provision will take effect once premium payments cease unless other instructions are given.

ADVANTAGES OF INTEREST-SENSITIVE WHOLE LIFE

• Provides coverage for the lifetime of the insured
• Guarantees cash value and death benefit
• Cash values intended to keep up with inflation
• Provides non-forfeiture benefits in the event of non-payment
• If insured’s health declines, underwriting is not an issue
• Policyowner may take loans or withdrawals if they have cash flow needs

DISADVANTAGES OF INTEREST-SENSITIVE WHOLE LIFE

• High cost relative to other types of insurance
• Inflexible premiums and death benefits