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Current Assumption Whole Life

August 19, 2011

John Jastremski Presents:

 

Current Assumption Whole Life

 

Definition

Current assumption whole life insurance is a type of permanent, cash value life insurance that is a variation of whole life with some similarities to universal life insurance policies. This type of policy provides premiums that are fixed for specified periods and recalculated on predetermined anniversary dates. With some policies, the death benefit is also recast. Current assumption whole life mimics universal life in the manner in which interest is credited and expenses are identified and charged.

Current assumption whole life (and individual insurance companies’ variations) are sometimesreferred to as interest-sensitive whole life, indeterminate premium whole life, or fixed premium universal life.

Prerequisites

  • You have a need for insurance and want fixed premiums and the potential for higher returnson your cash value

Key Strengths

  • Provides benefits common to all cash value life insurance
  • You can participate in favorable market returns

Key Tradeoffs

  • You assume some of the mortality and investment risk
  • Premiums could increase at redetermination date

Variations from State to State

  • No federal regulatory agency–insurance companies are regulated in each state by the department of insurance (or its local equivalent)
  • State laws govern ability of creditors to access cash values

How Difficult Is It to Implement?

  • Policy application may require physical exam
  • Can be difficult to compare policies
  • Tax issues relating to policy loans and surrenders can be complex

This material was prepared by Broadridge Investor Communication Solutions, Inc., and does not necessarily represent the views of John Jastremski, Jeremy Keating, Erik J Larsen, Frank Esposito, Patrick Ray, Robert Welsch, Michael Reese, Brent Wolf, Andy Starostecki and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com,  access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

John Jastremski is a Representative with FSC Securities and may be reached at www.theretirementgroup.com.

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