Altermative Survivor

View AlTERMative Survivor Plan Design

This strategy delivers survivor universal life insurance at a “term-like” outlay over the initial “term” period.

The strategy allows the client to invest the funds that would have otherwise been spent on life insurance premiums.

Age 65/65 Initial “term” ranges from 15 to 18 years
Age 70/70 Initial “term” ranges from 12 to 15 years
Age 75/75 Initial “term” ranges from 10 to 12 years

alTERMative Survivor is designed to give control to the client over how long the coverage is retained.

Partial premium finance design, combining a loan of the first year premium, amortized over 10 to 18 years, depending upon the ages and risk classes of the insureds, along with a level premium beginning at the end of the loan term.

At the end of the initial “term”, the planned premium increases to the new level premium needed to keep the coverage in force as long as desired.

Client must post acceptable collateral roughly equal to the difference between the loan amount and the policy cash surrender value, as required by the lender.

Benefits to Design:

Client has the option of keeping the coverage at the end of the initial “term” period, regardless of health, at a new level premium.

Strategy builds cash values which may allow client to exit strategy as early as the 8th year, depending upon age and risk class.

Strategy is not highly sensitive to interest rate conditions, since loan is anticipated to be fully repaid over 10 to 18 years.

Client can use policy loans to partially repay bank loan in the future.

Note: Loan is a 5 year loan, amortized over 10 to 18 years. Loan is renewable at the discretion of the lender, based upon continued good credit of the borrower and economic conditions at the end of the fifth year.