Whole Life Insurance – Simple, Complete and Guaranteed
Whole Life Insurance, unlike Universal Life Insurance is the simplest form of permanent life insurance. It features lifelong protection with guaranteed premiums, death benefit, and cash value.
Whole Life Insurance can be right for you if you want:
- Fixed premiums that will not increase
- A guaranteed death benefit payout
- Cash value that is guaranteed to grow each year – tax-deferred
- Dividends that can be used to increase the value of the policy
Some things to consider about Whole Life Insurance:
- Premiums are initially more costly than Term Life but are guaranteed not to increase
- Dividends are not guaranteed
- Loans and withdrawals can reduce the death benefit payout
Let’s Use MetLife for an Example with their Latest Whole Life Product
MetLife today announced the launch of its new Whole Life policy and with that, finalized the transition of all MetLife life insurance products to the 2001 Commissioners’ Standard Ordinary (CSO) Mortality Table. In addition to providing permanent life insurance coverage and traditional guarantees on premium, cash value and death benefit (so long as the policy remains in-force), Whole Life offers a competitive premium. This new product introduction will not affect in-force policyholders of MetLife’s existing whole life products.
“Today’s whole life insurance products still offer families long-term protection, growth in cash value, and dividend participation,” states Gene Lunman, senior vice president and head of MetLife’s Individual Business Product Management Group. “At MetLife, we’ve designed our offering to give individuals a competitive value proposition, additional benefits and a way to set aside additional money for the future. It is a reflection of MetLife’s commitment to providing individuals a foundation for their financial wellbeing and a solution for life’s many possibilities.”
MetLife’s new Whole Life insurance is a permanent life insurance policy that offers lifetime protection, as long as the policy remains in-force, remaining an attractive protection tool for those looking for guaranteed level premiums, guaranteed cash value and guaranteed death benefits. Annual non-guaranteed dividend payments are an attractive benefit of the policy, and if paid, may increase the cash value and death benefit over time.
Whole Life has been improved using the 2001 Commissioners’ Standard Ordinary (CSO) Mortality Table, which allowed a 4% nonforfeiture rate, premiums payable to age 100, and policy maturation at age 120. MetLife’s other permanent life insurance products, the Equity Advantage Variable Universal Life (EAVUL) and Guaranteed Advantage Universal Life (GAUL), were switched to the 2001 CSO Mortality Table earlier this year.
The Whole Life policy’s enhanced cash accumulation and distribution features maximize the opportunity to have a potential income stream by offering reduced fees and increased flexibility. Some of those features include:
- A reduced premium in most nonsmoker cases due to improved factors (larger reductions may occur at age 45 and over)
- A shorter-duration premium offset in many situations
- Improved Internal Rate of Return at the 10th and 20th year of the policy, emphasizing the importance of cash value growth and policy performance
- Greater flexibility with the improvements on the policy’s optional Paid-Up Additions Insurance Rider (PAIR, or known through MetLife Investors as The Enricher®), which allows the policyholder to pay additional premiums if desired, includes a premium payment duration increase from age 65 to 100, a premium load reduction from 5% to 3%, and a maximum annual cap increased to $5 million:
- First year cap remains at 15 times base standard nonsmoker premium (excluding policy fee)
- Renewal year cap remains at three times base standard nonsmoker premium (excluding policy fee)
- MetLife Group Term conversions are now available into the new 2001 CSO Whole Life product.
Like most insurance policies, MetLife’s policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. For complete costs and details, see your MetLife Financial Services representative.
Guarantees apply to certain insurance and annuity products (not securities, variable or investment advisory products) and are subject to the insurer’s claims-paying ability and financial strength.
*1 Withdrawal or loans will reduce your policy’s death benefit.
*2 MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisers regarding your particular set of facts and circumstances.
Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this website not intended to (and cannot) be used by anyone to avoid IRS penalties. This website supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.
*3 Not all riders are available in every state. Optional riders are available for an additional fee and are subject to contractual terms, conditions and limitations. Most riders can be selected only when you apply for your policy.
*Whole Life insurance is issued by Metropolitan Life Insurance Company on policy form # 8-90 (08), 200 Park Ave., New York, NY 10166.
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