Modified Premium Whole Life Insurance

Modified Premium Whole Life (MPWL) is a permanent, participating life insurance policy that features a lower initial premium that remains level for the policy's first five years, then increases to its ultimate premium in year six, and remains at that level for life. It is best suited for established individuals seeking a large amount of insurance and moderate cash value accumulation at a reduced premium.

The Benefits of Modified Premium Whole Life

• Provides permanent life insurance protection.
• Premiums are lower in the first five years.
• Accumulates tax-deferred, guaranteed cash value.
• Loan provision allows you to borrow from cash value.
• Eligible for dividends, if and when declared by the Company.¹
• Death benefit may increase annually with paid-up additions purchased from dividends.
• Death benefit, in most instances, is free from federal income tax.

Uses of MPWL

Individual
MPWL can be an effective method of protecting your family's assets. Some potential uses include:

• Traditional Insurance Protection
  Provides the financial security that gives families the peace of mind they deserve.
• Mortgage Protection
  Can help pay off mortgages and other outstanding debts in the event of a premature death.
• Retirement Funding
  Over the long-term, accumulated cash value can be accessed through policy loans to help fund a comfortable retirement.
• Education Funding
  Can help pay for children's and grandchildren's education through policy loans, or as named beneficiaries.
• Pension Maximization
  A possible solution to the pension dilemma, whereby a "single-life" pension option is chosen and life insurance proceeds are earmarked to replace the lost pension benefit in the event of pensioner's death.²
• Estate Planning Tool
  Can be an effective way of providing funds for estate expenses, and helping to avoid the sale of assets and/or the need to borrow.
• Charitable Giving
  Bequest life insurance to make a larger donation to your favorite charity.

Business
MPWL can play many vital roles in the smooth operation of a business. It can be used as an attractive employee benefit, and as a means to assure the business's financial future. Below are some examples of its use:

• Split Dollar Arrangement
  Employee is covered by an insurance policy while premiums are paid by the employer. The employer owns the policy, but the employee can name the beneficiary. Upon the death of the employee, the employer receives proceeds equal to the cash value of the policy, while the beneficiary receives the remaining proceeds.
• Group Equity Carve Out
  Offers employers the opportunity to provide permanent, cash value life insurance to select employees, while keeping the costs low.
• Deferred Compensation
  Offers employers the opportunity to provide benefits to employees at a later date, such as at retirement.
• Salary Continuation
  Offers employees supplemental retirement and death benefits.
• Buy/Sell Agreement
  Funding a buy/sell agreement through life insurance can be the smart choice for protecting your business's assets.

Available Riders
You can choose from a wide variety of policy riders to meet your specific needs.

Issue Ages
Accidental Death Benefit (ADB)
30-65
Provides additional death benefit if the insured dies as a result of an accident.

Children's Insurance (CI)
30-50
Provides level term insurance on the children of the insured.

Disability Waiver of Premium (WP)
30-59
Premiums are waived if the insured becomes permanently disabled for six months or longer.

Dividend Option Term (DOT)
30-85
(30-69 in NY)
A combination of a decreasing term insurance rider and base plan paid-up additions.

Increasing Premium Term (IPT)
30-65
Additional coverage through low cost term insurance.

Insurance Exchange (IE)²
30-85
Provides for the transfer of policy coverage to a successor insured, subject to evidence of good health.

Living Benefits Rider (LBR)
30-85²
Gives policyowner access to a portion of the policy's eligible death benefit should the insured be diagnosed with a terminal illness with a life expectancy of 12 months or less.³

Option to Purchase Paid-Up Additions (OPP)
30-85
The right to purchase additional paid-up life insurance that has cash value and loan value and is eligible for dividends.

Policy Purchase Option (PPO)
30-43
Guarantees the right to purchase additional insurance at crucial junctures in life.

Spouse and Children's Insurance (SCI)
30-50
Allows insured to purchase level term insurance for spouse and children.

Spouse's Paid-up Insurance Purchase Option (SPPO)
30-85²
Gives spouse/beneficiary the right to purchase a new paid-up whole life policy on his/her life without evidence of insurability.⁴

Survivor's Purchase Option (SPO)
30-75

Allows beneficiary to purchase a new life insurance policy on a designated insured without providing evidence of insurability.

1 Dividends are based on the policy's applicable dividend scale or interest crediting rate which is neither guaranteed nor an estimate of future performance.

2 There is no additional charge for this rider.

3 Various states have established different life expectancy periods once terminal illness is diagnosed. Your agent will be able to provide you with information specific to your state.

4 Not available in New York State.

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