Request for Illustration Letters
Defined-Death-Benefit, Minimum Premium Policy Designs
Defined-Death-Benefit, Minimum Premium policy designs typically specify a defined death benefit and calculate the minimum premium required to support that death benefit. Premium calculations either solve for a minimum amount to be paid over the life of the policy, or for a higher amount to be paid over a shorter duration (e.g., a 10-pay plan). In all cases, premiums are a function of Cost of Insurance (COI) Charges, policy expenses as to Premium Loads, Fixed Administration Expenses and Cash-Value-Based "Wrap Fees", and assumed policy interest/earnings. However, while pricing for all policies are based on these pricing elements, different policy types can label and disclose these pricing elements differently. As such, you will find below Request for Illustration (RFI) letters specifically written for each policy type:
1. Variable Life
2. Universal Life
3. Whole Life
Defined Contribution, Maximum Accumulation Policy Designs
Defined-Contribution, Maximum Accumulation policy designs typically specify a defined contribution amount and a defined payment duration, and calculate the death benefit can cash values that result from those premium contributions. Death benefits under Defined-Contribution, Maximum Accumulation policy designs are typically calculated to be the minimum death benefit permissable under IRS Tables for the Definition of Life Insurance (DOLI) and Modified Endowment Contract (MEC) premium guidelines. In all cases, cash values are a function of Cost of Insurance (COI) Charges, policy expenses as to Premium Loads, Fixed Administration Expenses and Cash-Value-Based "Wrap Fees", and assumed policy interest/earnings. However, while pricing for all policies is based on these pricing elements, different policy types can label and disclose these pricing elements differently. As such, come back soon to find below Request for Illustration (RFI) letters specifically written for each policy type, or contact us in the meantime for an offline RFI letter we can e-mail to you.
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