Assuris » Whole Life

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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 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.

Assuris Protection

If your life and health insurance company fails, Assuris guarantees that you will retain:

up to $1,000,000 or 90% of your death benefit, whichever is higher.
up to $100,000 or 90% of your cash value, whichever is higher.

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:

up to $100,000 or 90% of the accumulated value, whichever is higher.

Note: Dividends will continue to be paid. However, the amount of the dividends paid may be adjusted.

Example 1

Death benefit

$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

Cash value

$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.

Example 2

Death benefit

$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

Cash value

$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.

Example 3

Death benefit

$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

Cash value

$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.

Questions and Answers

What happens if I have taken a loan against the cash value of my policy?

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.

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

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)

Step 2 – Apply Assuris protection

$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