01 Jun FlexLife II
FlexLife II is an Indexed Universal Life Insurance that provides multiple index strategies, various income options, flexibility in payment options and living benefits. This is all that a client wants for his/her death benefit protection. National Life Group formed this policy so that people can have a better lifetime future. The insurance tool helps the family of the insured to get access to the funds immediately after his death and they don’t have to pay any income tax on those funds. The financial policy has a lot more benefits that make it stand out among the top insurance policies.
Features of Flexlife II
The purpose of designing the FlexLife II is to provide benefits beyond the limits of the clients who acknowledge financial protection using the medium of life insurance policy. It not only protects death benefits but also helps in building up your potential. It is the life insurance with living benefits.
The product has multiple index crediting strategies
- Indexed Strategy 1 works on S&P 500® point-to-point crediting method.
- Indexed Strategy 2 works on S&P 500® point-to-point crediting method with a focus on the Participation Rate.
- Indexed Strategy 3 works on S&P 500® point-to-point crediting method with no Earnings Cap.
- Indexed Strategy 4 works on S&P 500® point-to-average crediting method with no Earnings Cap.
- Indexed Strategy 5 works on MSCI Emerging Markets point-to-point crediting method.
Benefits of FlexLife II
- NL FlexLife
As the name suggests, NL FlexLife is a life insurance policy with flexible premium and amendable death benefits that can be adjusted with time and urgency. The crediting options as discussed above include multiple index strategies.
The monthly installment of the insurance will be $390 that becomes initially planned premium as $4680 annually.
If the insured person at the age of 34 is having a face amount of $482,255 at this age, he is going to receive $458,994 as the income tax-free death benefit at the age of 65.
At the initial age of 65, his initial annual tax-free income is $39,154. His total income benefit will be $2,192,624.
Do you have to pay taxes on beneficiary money?
Death benefit does not require beneficiaries to pay taxes.
- Accelerated Living Benefits
In case the client is in need money for medical assistance in the incident of any terminal illness, chronic illness or critical illness, he is allowed to use the funds under FlexLife product. These funds are known as accelerated living benefits. This is the reason why this policy is the life insurance with living benefits. People have different questions about their life insurance policy. For example:
Can I withdraw money from my life insurance policy?
Yes, you can withdraw money from life insurance but it will reduce the policy’s cash value as well affect death benefits which in future lead to a taxable event.
These benefits further has categories
- Accelerated Benefits Rider for Terminal Illness
- Accelerated Benefits Rider for Chronic Illness
- Accelerated Benefits Rider for Critical Illness
- Accelerated Benefits Rider for Critical Injury
Accelerated Benefits Rider for Terminal Illness
Accelerated benefits Rider for Terminal Illness allows the funds of the policy to be accelerated before the death of the insured in case of any terminal illness and for many reasons, he is not expected to live more than 24 months for illness reasons. No premium is available for the rider. The actual payment to be paid to the insured person will be less than the part of the death benefit accelerated as the benefits are to be paid before death.
At the age of 65, the insured person will get a lump sum of $398,948 as the accelerated benefit for terminal illness.
Accelerated Benefits Rider for Chronic Illness
Accelerated benefit rider provides a part of the person’s death benefit for chronic illness. No premium is available for the rider. As a result, this will affect the actual payment of the death benefit as its part of the payments is paid before death.
$7,780 is to be paid to the insured as chronic illness benefit every month after he turns 65 and it’s different for different ages like
At the age of 50, it is $4,582,
At the age of 60, it will be $6,694
At the age of 70, it will be $6,191.
Accelerated Benefits Rider for Critical Illness or Critical Injury
Critical rider allows the payment to be paid at the time critical illness or critical injury of the insured. No premium is there for the rider. As a result, this will affect the actual payment of the death benefit as its part of the payments is paid before death.
Accelerated benefit for critical illness is a lump sum of $394, 779.
Living benefit for critical injury is a lump sum of $394,779.
100% of the death benefit can be accelerated that can be subjected to a limit of $1,500,000 for illness including terminal and chronic illness and for critical illness, the limit is $1,000,000. There is a limit for chronic illness and the current annual limit for the same is $116,800.
FlexLife II is the critical illness insurance worth it with benefit that lasts for longer period of time.
- Cash Value Accumulation
The policy provides cash value accumulation accessible by the insured person with the help of policy loans and withdrawals for the purpose of college expenses of the child, any emergency help or any additional retirement income.
The insured gets an amount of $375, 569 at the age of 65 and $247,006 at the age of 100.
- Additional Benefits
Additional benefits include
- Lifetime Income Benefit Rider
Lifetime Income Benefit Rider allows an insured person to get the benefit of a lifetime in return for the cost of the accumulated value under certain conditions.
The conditions applied for this benefit are:
The insured person must have achieved the minimum age of 60 but should not exceed the age of 85.
The policy should have been in the process for at least 10 years or more for the last face value increment.
The policy loans must be completely repaid.
The benefits of the policy must be deducted from the accumulated value using policy loans.
- Overloan Protection Rider
Overloan protection rider protects the policy from falling due to the increasing accumulated value of the policy loan. Here also some limitations are applied:
The policy should be in force for at least 15 years.
The insured must have reached the age of 75.
The exercising of the rider results in paid-up policy.
A fee is included for the rider to work in progress.
- Interest Crediting Strategies Rider
The rider offers basic strategies for the policy including fixed-term strategy and multiple indexed strategies.
- Systematic Allocation Rider
Systematic Allocation Rider offers excessive net premiums of the basic strategy minimum value that meets the minimum threshold of the transferred amount to a systematic allocation account that will transfer the one-twelfth amount each month automatically to the new indexed segments.
- Waiver of Specified Premiums Rider
Waiver of Specified Premiums rider allows specified premiums to be waived at the time of insured’s total disability.
National Life Ratings 2016
National Life Group is rated as the third highest insurance company of A.M. Best’s 16 ratings. A.M. Best Company reaffirmed National Life Group as the excellent life insurance company with it’s A rating in National Life Ratings 2016.
Index Universal Life Insurance Pros and Cons
Index Universal Life Insurance is being saturated by people who want to invest little for their life insurance protection. As the premiums are paid, the cash value is increased with time and benefits the insured and his family also after his death. But everything has its advantages and disadvantages. Let’s take a look at the index universal life insurance pros and cons.
Pros
- Cash value grows with time as the premiums are paid.
- Tax-free death benefits to the beneficiaries
- Guaranteed premiums and guaranteed death benefits are possible in index universal life insurance. Provisions needed for critical illness and long-term medical care are offered in this insurance policy.
Cons
- Index Universal Life Insurance is at risk as it is connected with the equities.
- Outstanding loan fund against the policy of IUL have to pay income tax. Also if the policy is cancelled, profits turned out to be taxable as a part of the income.
- Some IUL policies are quite expensive. But not all policies are the same. The cost of the policy is subjected to the age and health of the person who wants to take up the policy.
As a conclusion, index universal life insurance is the best choice for anyone considering life insurance for the protection of their future and for the ones looking for death benefits and tax-free income.
FlexLife II, as a result, is great investments that provide great benefits with flexibility in the living benefits as well. This will further be used to pay your debt, replace the income you lose and help your dependents to maintain the lifestyle they used to live even after your death.
No Comments