Life Cover Reviews

Before life insurance illustrations were introduced, life insurance agents (that’s what they called themselves in those days- nowadays an agent is more likely to use a title like financial consultant or financial planner) used something called a rate book. The rate book contained virtually everything the agent and the prospective customer needed to know about the proposed life insurance policy.  Because there was no such thing as indeterminate premiums and adjustable life in those days, the cash value increased at a rate that could easily be shown as a value per $ 1000 of face amount in the rate book. Term insurance was not typically used except for group term life insurance for employee benefit purposes.

Sample term policy illustration and explanation

The illustration is for a renewable and convertible life insurance policy providing a level death benefit with guaranteed level premiums for the first number of years. After a number of years, premiums will increase annually.

Underwriting class

Premiums and policy charges illustrated for this coverage are based upon male, age 45 at preferred plus. Actual premiums for the insurance coverage may vary from the illustration depending on the outcome of the underwriting process.

Initial death benefit

The death benefit illustrated is $500,000. This benefit may be continued to age 95 if appropriate premiums are paid.

Initial premium

Based on a premium of $375. The payment frequency selected is annual. Premiums can be paid annually, semi-annually, quarterly or monthly by pre-authorised by bank draft. If you elect to pay the premium more frequently than annually, there will be a surcharge dependent on the mode and the total yearly outlay will be greater than the annual premium.

Guaranteed renewable

This policy may be reviewed annually without evidence of insurability of the insured’s age 95 provided appropriate premiums for each renewal period are paid.

Guaranteed conversion

Upon request, you have the right to convert all or part of the death benefit to a permanent life insurance plan for the duration of the guaranteed level premium period, or the insured’s age 70 whichever comes first.