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Characteristics
Similar to Universal 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
Adjustable Option A (level), Option B (base policy plus cash value)
Benefit Premium
Flexible at option of policyowner
Cash
Value
Varies depending on face amount and premium; Minimum guaranteed interest rate; Excess increases cash value
Advantages
To Buyer
Flexible premium payments and protection levels; Cost effective way to create liquidity for estate tax liability; Cost effective solution to provide protection for two income households
Disadvantages
To Buyer
Death benefit payable upon death of second insured; No benefits at first death unless special rider is added; Policy lapses if premium is not sufficient; Adverse change in interest, expense and/or mortality can affect satisfaction of long term goals
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