Protective Life Insurance Company and its affiliate, West Coast Life Insurance Company, have launched flexible premium universal life policies that offer a lower entry-level premium concept for guaranteed death benefits.
Called Protective ModLife and WCL ModLife, the two policies offer initial premiums that are 50% less, based on underwriting class, than other available guaranteed UL options, according to the Protective Life, Birmingham, Ala. The comparisons were made with guaranteed ULs issued by both Protective and West Coast as well as by 6 competing insurers, a spokesperson says.
The initial premium savings apply to policy years 1 to 5, the companies say.
The policies also include built-in lapse protection up to the policyholder's lifetime or age 121, the companies say. But the policyholder can also elect an option that shortens the lapse protection period to durations going out to ages 90, 95, or 100, the spokesperson says.
The products allow policyholders to select the desired lapse-protection duration and face amount, according to the companies. Based on the selections, the premium pattern then will provide a low entry level premium in the first 5 policy years, before gradually increasing in policy years 6 through 10. In policy year 11, the premium stops increasing and remains level for the remainder of the policy, the companies say.
The minimum face amount is $50,000 for non-tobacco and tobacco only risk classes. For all other risk classes, the minimum is $100,000.
The contracts can help meet the needs of "consumers who are struggling to find space in their already tight budgets for permanent life insurance protection," said John Deremo, senior vice president of Protective.
