Strong growth continues for whole life products

Transcription

1 Strong growth continues for whole life products Whole life insurance annualized premium in Canada was up 35% for the fourth quarter of 2010 and 27% for the entire year, according to statistics from industry research group LIMRA. Market players attribute this growth to a combination of continuing market uncertainty and demographics. n-participating tables pages 6 to 9 Participating tables pages 11 and 12 LIMRA s statistics, which were published in its Canadian Individual Life Insurance Sales Annual 2010 report, show that whole life growth far outstripped results for both term insurance, which was up 8%, and universal life (UL) insurance which grew by 14% in Whole life was also the only product line that saw an increase in the number of policies issued in 2010 at 1% over 2009, whereas universal life and term insurance saw declines of 4% and 3% respectively. Due to its strong sales, whole life also grew its market share. The persistent high sales of whole life resulted in a market share increase of three percentage points at the expense of term and UL, notes the report. Karen Terry, manager, product research at LIMRA and co-author of the sales report, says the upturn in whole life sales is related to the economic environment. With the economic downturn, there is a real desire for stability and guarantees. Whole life is a steady product. It has the guaranteed premium and there has been a real flight to security over the past few years in terms of moving away from the more flexible UL products to whole life. She says when clients purchase whole life, they have a clearer understanding of what premiums they ll be paying and the guarantees associated with the product than they would have with a more complex product such as UL. She adds that the sales increase trend in whole life began a few years ago when economic conditions began to decline. The same pattern was also seen at the beginning of the decade. The last time we had a recession, in 2001 and 2002, whole life had an uptick too. You tend to see this at times of economic decline. Ms. Terry says that she thinks whole life will likely maintain its sales momentum this year, particularly because of the repricing that is currently underway in the universal life market (See The Insurance and Investment Journal, February 2011). Higher pricing is probably going to put some downward pressure on UL sales, she adds. I think whole life sales will probably benefit from that. Quick success The sales performance of the whole life market is attracting increased attention from insurers to the product category, adds Ms. Terry. This is certainly the case for Sun Life Financial Canada. It launched two new whole life par products for sale in the independent channel in This marked a return to the par market for the insurer. It had withdrawn two par products in 2003 and until last year was only present in the whole life market Karen Terry With the economic downturn, there is a real desire for stability and guarantees. with a non par product called SunSpectrum Permanent Life, which is sold through Sun Life s career channel. Paul Fryer, vice-president, individual insurance at Sun Life, says the company s return to the par market has attracted tremendous interest and sales from advisors. In the first six months after their launch at the end of June 2010, the two products Sun Par Protector and Sun Par Accumulator brought in sales of $9 million in premium, mostly in the fourth quarter. We were really delighted sales were significantly greater n-participating whole life comparative table Company AXA Assurances Assumption Life BMO Insurance Product Whole Life 20, Whole Life 100 Whole Life Life 20 Pay Life (Term 100 Plus / Platinum) Issue ages 0 to to 80 0 to 65 (Plus: 18 to 75; Platinum: 0 to 75) Policy fees Per year: $75 main insured, $25 additional, $100 joint. $80 per year $75 per year Starting on the 10th policy anniversary After 10 years (if premiums are payable for life) On the 10th policy anniversary (after 4 yrs in force) Payment Whole Life 20: 20 yrs; Whole Life 100: Until age yrs, 15 yrs or for life (attained age of 100) Guaranteed level for 20 years (age 100) Minimum $10,000 Premiums payable for life: $10,000; Limited premium payments $25,000 (10 and 15 yrs): $25,000 Joint-life JFTD (up to 5 lives), JLTD (2 lives) offered on Whole Life JFTD and JLTD 100 only. Multiple-life Up to 6 insureds Guaranteed Starting on the 10th policy anniversary Payable for life: After 10 yrs; Payable 10 and 15 yrs: At the After in force 10 years; (4 yrs in force) end of the paying. Preferred Loan Up to 90% of policy s. 85% of the net cash surrender value. The Company will lend an amount that, with interest to the end of the policy year, will not exceed the Cash Value. Riders AD&D, WP (4 or 6-month waiting ), DI, Ch., CI, T10, T20, T70, AF AD, AD&D, WPD, WPDI, DI, Ch., WL junior, Youth Plus, T, WL Life AD, WPDI, Ch., T10, T20 6 THE INSURANCE AND INVESTMENT JOURNAL april

2 Paul Fryer We re swinging for the fences. Our goal is to see how far we can take this. than expected and we continue to enjoy that upward momentum. Sun Par Protector product is specifically for clients looking for long term and death benefit growth and interested in estate preservation. This is the best selling of the two products. It s our mainstream product, Mr Fryer says, adding that Par Accumulator is more of a niche product targeted towards small business owners or affluent individuals who may be interested in accessing their cash values, for example to bridge a retirement income gap or to meet the changing cash flow needs of a business. This product is available with a minimum of $500,000, whereas Sun Par Protector is available at a minimum death benefit of $50,000. During the fourth quarter, Sun Life s new par products captured 8% market share when compared with sales for similar par products from London Life, Great West Life, Canada Life, Empire Life and Equitable Life, plus Manulife Financial s non-par product that is similar to par whole life, says Mr. Fryer. Mr. Fryer says Sun Life re-entered the par market to fill a hole in the company s product shelf. We were seeing that Canadian consumers were demonstrating a renewed interest in participating whole life insurance. We re listening to what our advisors need to make sure they have a full suite of products to meet our clients needs. Why then did Sun Life leave the par market in 2003? Mr. Fryer says sales trends favoured universal life back then and par whole life sales were shrinking rapidly. When we looked at where sales were going, the interest rate environment at the time and the dividends scale we made the decision to focus our efforts on building the rest of our products. w the situation has changed. We see these traditional par whole life products as really resonating with clients, in particular the clients who are nearing their retirement years. So it is becoming more popular because of demographics. Individuals have some money that they want to put into a tax-preferred investment like participating whole life... What explains the rapid sales success of the company s new par products? Mr. Fryer says Sun Life s reputation, financial strength and advertising campaigns combined with product demand from advisors and clients are behind this very warm reception into the market. In addition, Mr. Fryer says that advisors know that Sun Life has a very long history in the par market dating back to the 19 th century. He underlined that the company has about $16 billion in participating life insurance account assets and is servicing some 1.6 million par policy holders from Sun Life and three of its acquisitions: Clarica, Metropolitan Life, and Prudential. Sun Life has high sales goals for its new par products. We re swinging for the fences. Our goal is to see how far we can take this. Products in development Unity Life of Canada is also increasing its focus on whole life. Brock Campbell, the insurer s vice president, marketing, product solutions and group creditor business, says the company is aiming to add two new par products to its lineup by the end of this year, or early next year. Prior to its acquisition by Foresters back in 2008, Unity Life was predominantly a term company without much of a presence in the whole life market, whereas Foresters had a whole life product, which hasn t been touched in a number of years, Mr. Campbell explains. So one of the things that Unity and Foresters are doing this year is to come up with a couple of new products in the par (Cont d on page 8) n-participating whole life comparative table Company Desjardins Financial Security Empire Life Industrial Alliance / Pacific LS Mutual Product Guaranteed Whole Life (GWL), Life 10 Solution 100 with Values (Sol100); Solution Traditional Insurance Whole Life Survie T100 (L10) and Life 20 (L20) 20 Pay (Sol20) (Life and Serenity 65) Issue ages GWL: 0 to 80; L10: 0 to 75 (except M Sol100: 0 to 75; Sol20: 0 to 70. L10/L20/L100: 0 to 70 ; L15 : 0 to 55; 0 to 80 smoker TRAD: 0 to 50); L20: 0 to 65. L65: 0 to 54; Child Life and Health Duo: 15 days to 20. (15 to 60) Policy fees Trad: $4.50 per month / $50 per year. UL: $60 (annual); $30 (preferred); $0 (rider). 1 insured $60, 2 insureds and more $90, $2.25/mo. or $25/yr. $4.40 per month or $ one time. add $30 for Joint. GWL: starting as of the 1st and the 9th yr;, L10 and L20: as of the 5th yr. Sol100: start in the 20th year; Sol20: no. After 10 yrs Becomes available in yr 15 Payment Minimum Joint-life GWL: life pay; L10: 10 yrs; L20: 20 yrs. Sol100: Life Pay; Sol20: 20 yrs. For 10 yrs, 15 yrs, 20 yrs and life pay: until age 65; Until age 30 for Child Life and Health Duo. (Life and Serenity: no) GWL: $25,000 ($10,000 for age 45 to 80), L10 and L20: $10,000. JFTD and JLTD. JLTD with waiver: L10 and L20 only. $25,000 or $500 annual premium. $10 000; $ for Child Life and Health Duo. ($10,000) JFTD or JLTD (2 lives) JFTD / JLTD / JLTD paid-up on first death. N/a for Child Life and Health Duo; (Life and Serenity: no) To age 100 or reduced paid up option as of the 15th policy yr. $25,000 (or $10,000 with minimum annual premium of $200) Multiple-life Up to 5 lives. Multi-Life (2 Lives) Up to 9 insureds Guaranteed GWL: starting as of the 1st and 9th yr; L10 Starting after 20 yrs After 10 yrs Becomes available in yr 15 and L20: as of the 5th yr.. Preferred Yes Loan Loan may not exceed the at the next premium due date. Available after 20 yrs 95% of the Up to 90% of cash surrender value Riders GI, AD&D, AD&F, WPD, WPDI, DI, Mortgage protector, T10, T20, T100, Ch., Ch. AD&F, CI, Ch. CI, GI, AD&D, WPD, WPDI, Ch., CI, Ch. CI, T10, T20, Sol100, Sol20 GI, AD, AD&D, WPD, WPDI, DI, Credit DI, Ch., CI, T10, T20, Pick-a-term T10 to T40, Hosp., Hosp. & home care, Paramedical care (if accident). april 2011 THE INSURANCE AND INVESTMENT JOURNAL 7 GI, AD&D, WPDI, Ch., ROP on death,

3 (Cont d from page 7) market space. He adds that the development process is in the preliminary stages but one product will be a simplified issue par product and the other will be a more full featured par product. This development plan is driven by both the opportunity in the whole life par market and today s low interest rate environment, which diminishes the attractiveness of universal life as a tax shelter for clients and its profitability for insurers, he adds. Competitive market Since the 2008 market crisis, the whole life market has become increasingly competitive, he adds. When the stock market crashed, I think you had a lot of people questioning whether universal life was the right product to be selling, simply because now you re exposed to these incredibly low of return, so that s one factor which turned people towards whole life As well, I think some of the past benefits of overfunding in universal life are probably not as important as they were a number of years ago. For instance, tax free savings accounts, now give clients an alternative place to put their money and gain tax advantages, he points out. Mr. Campbell points out that even in the whole life market, the market is mature. While 35% sales growth in the fourth quarter is a compelling number, one needs to get beneath that number to find out what s really going on. When you actually look at the numbers, what you see is in terms of policies issued, they re essentially flat which is indicative of a mature market. Brock Campbell What we re seeing inside these numbers is a flight to safety. Consumers are looking at plans that are less leveraged, less dependent on the dividend scale. The number that is increasing is the cost per thousand, meaning people are putting more money into their whole life plans, he underlines. It also indicates a movement to more limited pay plans as well, which would drive up the cost per thousand since these policies are paid up over a shorter of time. What we re seeing inside these numbers is a flight to safety. Consumers are looking at plans that are less leveraged, less dependent on the dividend scale... When the economy recovers, does he believe whole life will continue to maintain its strength? This is difficult to answer because of current market uncertainty, in particular about what impact the International Financial Reporting Standards (IFRS) will have on products. Certainly you re seeing a number of companies on the universal life side raise their. I have no idea whether that s the end of it or whether there will be further rate increases. One would assume that this is going to have some impact on the brokers moving towards products like whole life. Are whole life products likely to be hit by similar pricing increases as universal life? Mr. Campbell says he has not heard of any movement in whole life pricing and cannot even comment on Unity Life s products since the company has just started a pricing review. But, he says the nature of level COI universal life is particularly impacted by long term interest. As well, UL clients are lapsing products less than anticipated when the were set. So that is why I think you re seeing more of a price movement on the universal life product. Meanwhile, Sylvain Charbonneau, vice president, marketing and products at AXA Assurances, thinks that IFRS will have an impact on whole life and that the current sales strength may continue for the short term only. IFRS rules are likely going to impact product design and prices mid to long term, therefore potentially slowing growth. (For more on this topic, see article, AXA aims for disciplined growth on page 10). Donna Glasgow n-participating whole life comparative table Company La Capitale Manulife Financial Standard Life Canada Product n-par. permanent advantage Performax Gold Whole Life Issue ages Life: 0 to 80; 18 to 75 joint / 10-pay: 0 to 75; 18 to 70 joint / 15-pay: 0 to 70; 18 to 65 joint / 20-pay: 0 to 65; 18 to 60 joint. Single: 0 to 85; JFTD: 25 to 85; JLTD (costs to last death) 25 to 90. WL 100: 18 to 80; WL limited pay: 15 days to 100-yrs of premium payment. Policy fees $30 Annual: $24.96; Semi-Annual: $21.00; Quarterly: $65 $10.50; Monthly: $3.50. After a certain number of yrs (varies by issue age) Yes Available after 10 yrs Payment For life, 10-pay, 15-pay or 20-pay. Costs to age 100; costs for 15 yrs. Life pay, 20, 25, 30 yrs, until age 65 or 75. Minimum $10,000 $25,000 $25,000 Joint-life Yes JFTD; JLTD. JFTD: up to 5 lives; JLTD: 2 lives. Multiple-life Up to 99 coverages Yes Guaranteed After a certain number of yrs (varies by issue age) Available After 10 yrs Preferred Yes Yes Loan 90% of total policy value. Available after first policy year. 85% of the net cash surrender value of the policy Riders GI, AD&D, WPD, WPDI, DI, Ch., CI, T, AF, Monthly Payment GI, AD, DI, Ch., T, Business Value Protector, Early Cash GI, AD, WPD, WPDI, Ch., CI, Ch. CI, T10, T20 Term Rider Value Enhancer Legend AD AD&D Ch. CI Accidental death only Accidental death and dismemberment Children Critical Illness DI GI Hosp. JFTD JLTD Disability (benefits paid) Guaranteed Insurability Hospitalization Joint first-to-die Joint last-to-die Mo. T UL WL WP Month Term Universal life Whole life Waiver of premiums WPD WPDI Yr, Yrs Waiver of premiums upon death Waiver of premiums upon disability Year, Years 8 THE INSURANCE AND INVESTMENT JOURNAL april

4 n-participating whole life comparative table Company UL Mutual Unity Life Wawanesa Life Product Liberation 10 Life Option Enhanced Term to Age 100 (Adaptable, PRO 10) Issue ages 0 to 15 Adaptable: 0 to 65 PRO 10: 16 to 70 0 to 80 Level: 18 to 80; 15/20 Pay: 0 to 80 Policy fees $100, multi-contracts: $75 ($90) $100 per year $65 per year After 10 yrs or under FBB (Adaptable: on the 10th policy anniversary; PRO 10: After 10 yrs or under Special premium loan option) Earlier of: premium paying or 20 yrs On 15/20 Pay T100 plans only (as early as the 10th year) Payment For 10 yrs or under FBB; Adaptable: Until age 45, 55, 65 or 75 (minimum 20 pays); PRO 10: for 10 yrs or under Special premium loan option n-smokers: 15 Pay to Pay to 100; Smokers: 20 Pay to Pay to 100; Juveniles: 20 Pay to Pay to 65. Life Pay, 20 Pay, 15 Pay. Minimum $ $25,000 $10,000 Joint-life (Adaptable and PRO 10: JFTD, JLTD & prem. until last) JFTD, JLTD Multiple-life Policies with common billing and issue date will be issued with a full $100 policy fee on the 1st life and a $50 policy fee on subsequent lives (up to a maximum of 6). Guaranteed End of paying ; Adaptable: From the 10th policy anniversary (3 scales of surrender values available); PRO 10: after the 10th policy anniversary Earlier of: premium paying or 20 yrs On the 15/20 Pay T100 plans only (as early as the 10th year) Preferred Loan 90% of the Loan amount is the Cash Value calculated as of last anniversary Up to 93% of Cash Surrender Value Riders AD&D, WPD, WPDI, WP in the event of loss of employment, CI, AF (DI, Ch. T) AD, WP, Ch., ROP on death AD, WPDI, Ch., T10, T20, T30, Parental Waiver Death or Disability (for Juvenile policies). STAY INFORMED, STAY ON TOP: GET YOUR OWN COPY 1 year: 10 issues $ taxes* 2 years: 20 issues $ taxes** VISA # Exp: CHEQUE ENCLOSED MASTER CARD # Exp: (Cheque payable to The Insurance and Investment Journal) First name: Last name: Position: Company: Address: Your business activities include: Life insurance General insurance Investment funds Financial planning Securities City: Province: Postal code: Telephone: ( ) Fax: ( ) Please notify us of a change of address by post, fax, , or via our website. The Insurance and Investment Journal, Rue de la Commune West, Montreal, QC H2Y 2E1 * 1 year (taxes included): QC, NB, NF, NS: $28.22; other provinces: $26.25 ** 2 years (taxes included): QC, NB, NF, NS: $50.79; other provinces: $47.25 AB0807 For faster service, visit our website or send the form by fax: THE INSURANCE AND INVESTMENT JOURNAL april

5 Participating whole life comparative table Company Assumption Life Canada Life Co-operators Empire Life Equitable Life Product name (English) ParPlus ParPlus Junior Wealth Achiever Estate Achiever Whole Life; 20 Payment Life; Life Paid Up at 65 Estate Foundation Optimax 100 and Optimax 20 Pay Equimax Participating Whole Life Issue ages 18 to 75 ParPlus Junior: 15 days to 17 years Age 100:, Single Life 0 to 85; Joint lives 18 to 85 Equivalent Single Age (ESA) Max 20: Single life 0 to 80; Joint lives 18 to 80 ESA Whole Life: Smokers 0 to 80, n-smoker: 18 to 80; 20 Payment Life: S: 0 to 65, NS: 18 to 65; Life Paid Up at 65: S 16 to 55, NS: 18 to 55; Estate Foundation (EF): 0 to 15 Administration $80 $35 annually (incorporated within $50 annual, $26 semi annual, (policy) fees the yearly premium). $4.50 monthly Reduced paidup Available at any time as long n-forfeiture option, total cash Yes insurance as s have been ac- value as single premium to option cumulated. purchase par paid-up insurance, when the guar.s begin; extended term available Premium payment Minimum face amount Joint-life Multiple-life Guaranteed Survivor Current dividend scale Payment or withdrawal from the participating account 20 yrs or for life (until age 100) Pay to age 100, Max 20: Additional deposit option (ADO) allows additional payments to purchase paid-up ins.; scheduled and single premium versions ADO available; premium offset may be available $5,000 (of base insurance) $25,000 for single life $50,000 for joint lives Available as a JFTD policy. (except Junior) Joint first-to-die (JFTD) Joint last-to-die (JLTD), prem. payable to first death; JLTD pay. to last death Optimax 100: 0 to 85; Optimax 20 Pay: 0 to 70 $60 (annual), $30 (annual preferred ) Starting as early as the first year, depending on selected and riders. 0 to 75 Life Pay, 0 to Pay (0 to 15 Juvenile). Annual, semi annual, monthly Pay to age 100 or 20 Pay Life Pay; 20-Pay. $10,000 (EF: $5,000) 0 to 17: $5,000; 18 to 64: $15,000; 65+: $10,000 t available. JFTD and JLTD JFTD; JLTD $50.00 annually or $5.00 preauthorized monthly payment Availability depends on issue age, but not earlier than 5th policy year. Single Life: $10,000 Basic coverage; Single Life Enhanced Protection: $11,000; Joint: $50,000 ne Two lives: each can choose premium but only one dividend option Available as of 6th policy anniversary. Wealth Achiever 1st year Offered 1st year, depending on selected Depends issue age, not earlier Estate Achiever 6th year and riders. than 5th policy year JFTD: death before 70 years, term Yes, feature included with JFTD ne JFTD contains survivor and policy Yes, offered on Equimax Joint same amount continued on survivor policies on two lives exchange that provide the First to Die plans. Within 60 days for 90 days, may convert to survivor with insurance after the of the first death, the surviving permanent without proof (except first death. 90 days. life insured has the option to Junior) purchase a single life permanent plan. Projected dividends on 6% interest rate; many variables such as mortality experience, investment return and administration expenses will determine the actual dividend each year. Paid in Cash; Reduced Premium; Accumulation; Paid Up Additions; Enhanced The 2011 dividend scale interest rate is 7.4%. Paid-up additions (PUA) Enhanced coverage option (ECO) - available with a 10-year or lifetime guarantee Cash accumulation Premium reduction Cash payment Riders AD&D, WP, Chidren (except Junior) GI, BGP, AD, WP, Ch., CI, Ch. CI, T, Additional deposit option Assets allocation of participating account Cash and equivalents 4%, Bonds 74%, Mortgages and loans 6%, Equities 12%, Other 5% Invested Dec. 31: short term, fixed income 79.1%; equities 20.9%; Investment expenses for 2010 were 7.2 bps 1.9% n-applicable Dividend Scale is priced as a set of based on several variables, including mortality and investment experience. Paid up additions; Accumulate with interest (EF: n/a) GI, AD, WP, Ch., T (EF: GI, AD, WP) Cash Option, Paid-Up Additions, Reduction of Premium, Tax-Exempt Investment Account, Extender Plus Paid-Up Additions (with a 10-year Guarantee or Lifetime Guarantee). GI, AD&D, WPD, WPDI, Ch., CI, Ci Ch., Paid-Up Additions, Solution 10, Solution 20, Solution 100 (Term or with Values), 20 Pay Solutions, Spouse Paid in Cash, Cash to Reduce Premiums, On Deposit, Paid Up Additions, Enhanced Protection with a 10 Year Enhancement Guarantee or Lifetime Enhancement Guarantee Option. GI, AD, WPDI, DI, Ch., T10, T20, Bereavement Counselling Benefit 69.8% Bonds; 16.9% Equities; Bonds 44%, Private Placements 5.2% Policy Loans; 8.1% Cash/ 7%, Mortgages 14%, Real Estate Other (as of December 31, 2009). 12%, Equities 10%, Other assets 1%, Policy loans 12% (as of December 31, 2010). Would you like to compare other distinctive features of these products? Insurance INTEL Subscribe today! Assurance april 2011 THE INSURANCE AND INVESTMENT JOURNAL 11

6 Participating whole life comparative table Company Great-West Life La Capitale Sun Life Financial Unity Life Product name ExceLife - Estatemaster - Enhanced Equity Participating permanent advantage Sun Par Accumulator Advantage Series Whole Life (English) Sun Par Protector Issue ages ExceLife and Estatemaster: 0 to 80 (nonsmoker 0 to 69 Life pay: 18 to 80; 20 pay: 18 to 65 (Prot. 0 to to 80); Enhanced Equity: 15 to 60 (NS available 20 to 60) Life pay: 0 to 80; Pay to age 65: 0 to 44; 20-pay: 0 to 65) Administration ExceLife: $100; Estate, Enhanced: $50 $30 $50 per year or $4.50 per month Annual: Ages 0 to 15: 10 $; Ages 16 to (policy) fees 80: 20 $ Reduced paidup insurance option Premium payment Minimum face amount Joint-life Multiple-life Guaranteed Survivor When the guaranteed s begin Under the reduced paid-up life insurance non-forfeiture provision, total used as single premium for reduced amount of par paid-up ins.; To maintain as much death benefit as possible, enhancement may be added to the reduced paid-up amount; dividends used for enhancement cost ExceLife and Estatemaster: life; Enhanced Equity: until age 85; Additional deposit option allows additional scheduled and unscheduled premium to purchase extra PUA coverage; Premium offset may be available ExceLife: $25,000 single life up to and including age 70; $50,000 for single life ages 71+ and joint lives; Estatemaster: $10,000 single life up to and including age 70; $50,000 for single life ages 71+ and joint lives; Enhanced Equity: $50,000 (single and joint lives) Joint first-to-die (JFTD) Joint last-to-die (JLTD) After a certain number of years that varies by issue age. Life-pay; 20-pay. If premiums are still payable under the policy. Reduced paid-up insurance may be eligible for dividends. Life pay, 20-pay (Prot.: Life pay; Pay to age 65; 20-pay) After year 3 Life pay $10,000 $500,000 ($50,000) $10,000 JFTD, JLTD premiums to last death, JLTD premiums to first death. Up to 99 coverages ExceLife: Starting within six to 10 years, After a certain number of years that varies depending on the age of the insured at by issue age. issue; Estatemaster: Starting within two to six years, depending on the age of the insured at issue; Enhanced Equity: Starting at the first policy anniversary Yes, feature included with JFTD policies on two lives Current dividend scale The 2011 dividend scale interest rate is 6.9%. Payment or Paid-up additions (PUA) withdrawal Option G term enhancement from the Accumulation participating Premium reduction account Cash Riders Assets allocation of par account GI, AD, WP, Ch., T, Spouse, Substitute life option, Additional deposit option Invested Dec : cash and equivalents 5.7%; fixed income: 78.0%; equities: 16.3%; invest. expenses in 2010: 8.1 bps Dividends to purchase paid-up ins.; When the benefit is issued with an extra premium or issued by virtue of a conversion privilege or guaranteed insurability benefit contained in an individual or group life insurance contract, the dividends are left on deposit and bear interest at a rate determined by the Insurer. This coverage will participate in the profits of the Insurer. GI, AD&D, WPD, WPDI, DI, Ch., CI, T, AF, Monthly Benefit Term Rider (The Provider) Begins at the end of year one (Prot.: year 5). JFTD survivor and automatic survivor benefit available if equivalent single age is less than 65. The 2011 dividend scale interest rate is 7.4%. Paid-up additional insurance, annual premium reduction, dividends on deposit, cash payment; and enhanced insurance: 10-year or lifetime guarantee for Protection GI, AD, WPD, WPDI, DI, Ch., T5, T10, T20, Optional Plus Premium benefit 33% corporate bonds/loans, 20% government bonds, 18% real estate, 17% equities, 11% mortgages, 1% cash Year 3. Paid-up additions (required dividend option for Lifetime death benefit guarantee); leave dividends to accumulate with interest; have the dividend paid in cash; reduce premiums payable (available only on Advantage Base Plan). GI, AD, WP, Ch., T, Spouse Would you like to compare other distinctive features of these products? Insurance INTEL Subscribe today! Assurance INTEL 12 THE INSURANCE AND INVESTMENT JOURNAL april