Life Insurance Company of the Southwest is rolling out a universal life policy that is designed to provide both death benefit guarantees and cash value accumulation.
Called LSW IncomeBuilder UL, it includes a new optional death benefit protection rider, says the company, a member of National Life Group, Montpelier, Vt.
The rider can guarantee 20 years of death benefit protection as long as the monthly premium test is met, even if the cash surrender value is less than or equal to zero. The premium payments need to equal to the monthly guarantee premiums.
Withdrawals and policy loans taken against the policy will affect the monthly premium test, the company says, but the customer can deposit an additional premium to keep the rider in force.
Also available: three no additional cost accelerated benefits riders. In states were offered, they accelerate the death benefit for terminal Illness, chronic illness and critical illness. Policy death benefits, cash values and loan values will be reduced upon acceleration.
The company is positioning the policy for the emerging affluent market–people looking for premium and death benefit flexibility, access to future tax-deferred cash value accumulation through policy loans and withdrawals, a guaranteed interest rate, and death benefit protection at a competitive premium.
Guarantees are dependent upon the claims-paying ability of the issuing company, the company says.