A whole life insurance policy pays a death benefit when the insured person dies. A cash value will be paid if the policy is surrendered prior to death. Participating whole life policies pay dividends based on the life and health insurance company’s earnings on the participating whole life fund.
A whole life insurance policy includes both a death benefit and a cash value benefit under Assuris protection. If your whole life insurance policy has an associated investment account (to hold pre-paid premiums or accumulated cash dividends) it is also protected by Assuris as an accumulated benefit.
If your life and health insurance company fails, Assuris guarantees that you will retain:
If your whole life insurance policy has an associated investment account (to hold pre-paid premiums or accumulated cash dividends), Assuris guarantees that you will retain:
Note: Dividends will continue to be paid. However, the amount of the dividends paid may be adjusted.
$750,000
Original benefit amount
Since your death benefit is less than $1,000,000, you will retain your full benefit amount.
$750,000
Protected benefit amount
$90,000
Original benefit amount
Since the cash value is less than $100,000, you will retain your full benefit amount.
$90,000
Protected benefit amount
Note: This example assumes that the death benefit has not been adjusted for the cash value.
$1,500,000
Original benefit amount
Since your death benefit is more than $1,000,000, you will retain 90% of your benefit amount.
$1,350,000
($1,500,000 × 90%)
Adjusted benefit amount
$250,000
Original benefit amount
Since the cash value is more than $100,000, Assuris guarantees that you will retain 90% of your benefit amount.
$225,000
($250,000 × 90%)
Adjusted benefit amount
Note: This example assumes that the death benefit has not been adjusted for the cash value.
$1,500,000
Original benefit amount
Since your death benefit is more than $1,000,000, Assuris guarantees that you will retain 90% of your benefit amount.
$1,350,000
($1,500,000 × 90%)
Adjusted benefit amount
$95,000
Original benefit amount
Since the cash value is less than $100,000, Assuris guarantees that you will retain your full benefit amount.
$95,000
Protected benefit amount
Note: This example assumes that the death benefit has not been adjusted for the cash value.
If your life insurance has associated benefits and riders, click here.
Assuris protection will be calculated at the date of failure based on the net death benefit and the net cash value under the policy after the deduction of any policy loans.
$1,250,000
Original death benefit amount
$95,000
Original cash value benefit amount
$50,000
Example Step 1 – Calculate the net cash value benefit and net death benefit: $1,250,000 Original death benefit amount $95,000 Original cash value benefit amount $50,000 Your loan
Net death benefit amount:
$1,200,000
($1,250,000 – $50,000)
Net cash value amount:
$45,000
($95,000 – $50,000)
$1,200,000
Net death benefit amount
$45,000
Net cash value amount
Assuris protection on the death benefit:
Since the net death benefit is more than $1,000,000, Assuris guarantees that you will retain 90% of the net death benefit amount.
$1,080,000
($1,200,000 x 90%)
Assuris protection on the cash value:
Since the cash value is less than $100,000, Assuris guarantees that you will retain the full net cash value amount.
$45,000
