Two new universal life policies are debuting on a current assumption chassis that automatically includes extended guarantee features.
Called Performance UL and Performance SUL, the policies are single- and joint-life contracts, respectively.
Issued in most of the United States by John Hancock Life Insurance Company, Boston, and in New York by John Hancock Life Insurance Company of New York, Valhalla, N.Y., each policy has a no-lapse guarantee that says the policy will not default even if the cash surrender value falls to zero or below.
This guarantees is provided as long as the “death benefit protection value” remains greater than zero and policy debt never exceeds the policy value, according to John Hancock, a unit of Manulife Financial Corp., Toronto.
For Performance UL, at issue ages 60 or below, the no-lapse guarantee runs for the greater of 30 years or to age 80; for issue ages 61-90, for the greater of 10 years or to age 90.