Interest Sensitive Whole Life


    Interest sensitive whole life forms the bedrock of a solid life insurance plan. It provides the basic four guarantees for a plan upon which one may depend:

    1. Premium cost rates are guaranteed never to increase
    2. Benefit amounts are guaranteed never to decrease
    3. Cash values are guaranteed to increase with time
    4. Coverage is guaranteed never to be cancelled except for non payment

    In time, the interest earned on the cash value will be sufficient to pay the premiums and the policies become self supporting. Policies can always be exchanged for reduced paid up policies or for extended term policies of the same benefit amount. Many provide for living benefits for the terminally ill. And, of course, they can always be surrendered for cash value. They become a valuable asset with guaranteed options to fit a variety of needs.

    Premiums of as little as $1.00 or $2.00 per week make the plans affordable for everyone. They may cover not only the employee, but also a spouse, dependent children, and even grandchildren. The benefit amount depends upon the age at the time of purchase. Usually, the same rates apply to males/ females, and to smokers/non-smokers.

    With some policies, the whole life can be combined with term insurance to increase the amount of death benefit for a given premium cost. This term portion of the policy can be decreased or eliminated in later years if the need for the extra coverage no longer exists, leaving the policyowner with the smaller cash value insurance in older years.

    Coverage is usually offered on a guaranteed issue basis which means that no one is turned down for medical or other reasons the first time it is made available to an employee.

    Upon termination, an employee may maintain the policies at the same basic rate through direct payment to the insurance company. The only thing lost is the convenience of the payroll deduction.

    There are usually optional features that can be added to a policy like accidental death, waiver of premium for total disability, children's term riders, and disability income riders.

    Not everyone wants or needs additional, permanent, individually owned life insurance, but for those who do this is an excellent way for them to obtain it. They get the advantage of group rates and the all the privileges of individual ownership.


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