Category: Survivorship Guaranteed Universal Life

American General Life Insurance Company has introduced  “Secure Survivor GUL”.  Survivorship Insurance, also called Second-To-Die Insurance, is designed for couples for estate planning purposes. It is less expenses than individual coverage.

Key Features:

Guaranteed Universal Lifurvivor GUL”e (GUL)  guaranteed not to lapse, no lapse, with timely premium payments; guaranteed death benefit and premiums.

Guaranteed cash value accumulation

Ability to reduce the death benefit and premiums in future years.  Pro-rata partial withdrawals of cash value permitted while maintaining the age 121 lifetime guarantee.

• For example male and femal age 64 both preferred non tobacco,  $4,000,000 policy,  $44,853 premium.  Accumulates $543,682 guaranteed cash value at age 84.   Access half the cash value $271,841 (less withdrawal fee) maintain half the death benefit $2,000,000 policy, $22,427  new guaranteed premium – guaranteed to age 121

Return of premium feature: one-time option at end of policy year 15 for return of up to a maximum of 100% of premiums paid, a no cost rider

Comments:  American General’s product has what they call optionality.  The choice to reduce the death benefit, premiums and accessing the guaranteed cash value while maintaining the lifetime guarantee, as well as the option to return premiums in year 15 are very valuable and flexible options.  The guaranteed cash value accumulation is another useful plus to this product, unlike most Guaranteed ULs which build little or no cash value making premium payments and lapse protection much less flexible over the course of the policy.