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Characteristics
Similar to participating whole life except two insureds are covered; death benefit is paid at the time of the second death
Market
Upper income, high net worth individuals with estate planning needs; dual income families who could be supported by one income
Death
Benefit
Fixed; level
Benefit Premium
Fixed; level
Cash
Value
Fixed with minimum guaranteed cash value; excess through dividends
Advantages
To Buyer
Cost effective way to create liquidity for estate tax liability; cost effective solution to provide protection for two income households; premiums are lower for equivalent death benefit than two separate policies
Disadvantages
To Buyer
Death benefit payable upon death of second insured; no benefits at first death unless special rider is added; policy lapses due to failure to pay premium; if term rider is added, premiums could increase if dividends are lower than projected and/or term rates increase
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