POLICY PREVIEW · AGE 37 · FLEXLIFE EXAMPLE
An illustrative proposal for a 37-year-old in Florida who meets the health and insurability requirements of the category used. The insurer’s underwriting determines eligibility, premiums, and final terms.
The annual amount is rounded. After the seventh premium payment, this illustration assumes no further premiums. Seven years of premiums do not guarantee lifetime coverage. See how long coverage lasts in each scenario →
This preview uses an illustration for age 37 in the standard nonsmoker category. It does not confirm the applicant’s health status or approval. It is an educational example, not an issued policy or a binding offer.
Page 12 identifies this as “Minimum Premium (MMP)” in this annual-payment illustration. It is not a promise that paying this amount will maintain lifetime coverage.
The minimum needed in a future year depends on the policy’s circumstances. This demo does not calculate it.
This is the premium used in the chart: 500,000 USD in total, with no further premiums assumed from year 8 onward.
Reducing a premium does not preserve the values or lapse ages shown in that chart.
The PDF calls this “Max Non-MEC Premium.” It is an initial reference for the seven-pay test used to avoid MEC tax classification.
It does not mean you can pay this amount every year indefinitely. A separate cumulative limit applies, and available room must be confirmed before paying more.
Two separate tests must be met. This illustration uses the Guideline Premium Test (GPT): cumulative premiums must not exceed the greater of the guideline single premium or accumulated guideline level premiums. The initial printed amounts are 500,000 USD and 31,245 USD, respectively.
In addition, avoiding MEC classification requires meeting the cumulative seven-pay test, whose initial reference amount is 117,971 USD. An amount allowed by the GPT may still fail the test for avoiding MEC classification. The 500,000 USD amount does not authorize paying it all at once while retaining the same tax treatment.
The maximum additional premium each year depends on prior payments, the policy year, tax tests, and contractual changes. Before increasing a payment, ask the insurer how much it will accept and how much room remains without MEC classification. The tax status shown for the original plan does not automatically carry over to a modified plan.
Source: page 12. MEC is a classification that changes the tax treatment of distributions such as loans and surrenders. It is separate from the general death benefit income tax exemption.
A single number is not enough. The Death Benefit Protection Rider (DBPR) describes protection against lapse during the first 25 years if its funding test is met. The timing of premiums, withdrawals, and loans affects that test.
Page 12 shows a protection premium of 8,488.85 USD; page 15 specifies a monthly guarantee premium of 723.33 USD for the initial benefit. These are not interchangeable with the MMP minimum premium, and the required monthly payment should not be derived by dividing an annual figure by twelve.
Before reducing or pausing premiums, request an updated illustration and confirm how much must be paid, and when, to maintain coverage and the rider’s terms. Additional premiums may be needed later.
Sources: pages 9, 12, 15, and 22–27. The DBPR test uses a contractual accumulation rate of 5%; this is not a return credited to your money.
Confirm the premium needed to maintain coverage → request an illustration with the new schedule → review the remaining cash value and protection.
01 / DEATH BENEFIT PROTECTION
Lost income can leave housing costs, debts, and dependents without support. This is the primary purpose of insurance.
Protection begins when the policy is issued and takes effect under its terms. You do not have to wait until all seven premiums have been paid.
In the United States, benefits received by beneficiaries because of the insured’s death are generally excluded from their federal taxable income.
Interest paid separately may be taxable, and exceptions exist, including certain transfers of a policy for value. Estate taxes are a separate matter. This rule does not automatically describe the treatment of surrenders, loans, or accelerated living benefits.
Source: IRS: death benefits and federal estate tax.
Beneficiaries receive the death benefit in effect, subject to the contract. Accelerated benefits, loans, and outstanding interest may reduce it.
This amount is not automatically added to cash value. This case uses death benefit option A.
Sources: pages 16, 21, and 24–27.
02 / CASH VALUE
The policy has insurance charges and may accumulate cash value. That is why premiums paid, the internal balance, and the amount you would receive upon surrender are different figures.
The sum of your premiums through that year. At the end of year 7, the total is 500,000 USD.
The value inside the policy, with charges reflected. It may differ from what you can receive upon surrender.
The illustrated amount upon full surrender, before possible tax consequences. Surrender ends the protection.
THE KEY MILESTONE IN THIS EXAMPLE
Only in the current, nonguaranteed 6.84% scenario. This is the first year in which illustrated surrender value exceeds premiums paid. Surrender ends the protection; the amount is before possible tax consequences.
Premiums paid: 428,571.42 USD
Accumulated value: 442,510 USD
Surrender value: 423,990 USD
Surrender value is still below premiums paid.
Premiums paid: 500,000 USD
Accumulated and surrender value:
2,148,793 USD
No further premiums assumed. The outcome depends on the assumptions.
All three scenarios already assume seven premium payments and none afterward. Here is what each shows:
Reaches maturity in year 84 with no earlier lapse shown.
Policy year 63.
Policy year 37.
The current scenario projects keeping the policy in force through age 120 with those seven premiums; it does not guarantee it. Charges continue, and actual results may require additional premiums. Sources: pages 22–27.
The curve reflects the selected value and scenario. The dashed line shows premiums paid.
Each point is an annual row from the PDF. Lines only connect those points; they do not represent values between years. The chart ends when the scenario lapses: guaranteed in year 37 / age 73; alternative in year 63 / age 99. The current scenario reaches year 84 / age 120, the illustrated maturity.
Illustrated allocation: 100% S&P 500 point-to-point Cap Focus. This is not a direct investment in the index.
| Year | Age | Premium | Cumulative premiums | Accumulated value | Surrender value | Death benefit | Source page |
|---|
UNDERSTANDING GROWTH
This plan allocates 100% to the S&P 500 Cap Focus strategy. The index is a reference for crediting interest; the money is not invested directly in S&P 500 stocks.
If the index declines during the measurement period, the index credit has a floor of zero.
Charges continue: the balance can decline.With 100% participation, the index credit is limited by this strategy’s cap.
The cap can change. It is not a guaranteed net gain.This is the maximum illustrated rate used in the PDF’s current scenario.
It is not a fixed rate or an annual promise.The index falls −15%↓Index credit 0%
The index rises +6%↓Index credit 6%
The index rises +20%↓Index credit 11%
Examples of the mechanism using the current 11% cap, 100% participation, and 0% floor. These are not net returns: they exclude charges and the accumulated value enhancement rider’s bonus. They do not change the chart’s original projections.
Sources: pages 7 and 18–21. The cap applies to the period’s index credit; it does not define a maximum net return for the entire policy. The illustration also includes a 0.25% bonus from year 2 under its rider, subject to conditions. Costs are already reflected in the chart’s annual values.
Annual changes from 2016 to 2025 listed on page 20 of the PDF. The S&P 500 represents large U.S. companies; it is not the entire stock market.
Price index, excluding dividends. 12.85% is the equivalent compound annual growth rate calculated from those ten rounded changes; the arithmetic average is 13.92%. Neither is this policy’s return. The PDF’s hypothetical strategy columns are not presented as actual results.
Source of figures: page 20 of the illustration. Learn about the index at S&P Dow Jones Indices.
03 / LIVING BENEFITS
A health problem can change your ability to work or care for yourself. This plan illustrates riders that allow you to request part of the death benefit for certain eligible events.
Choose a situation to learn about the requirements. These are accelerated benefits from the same policy: receiving them involves discounts and reduces the remaining protection.
No additional premium does not mean a free accelerated benefit: a discount applies and remaining protection is reduced. Sources: pages 5, 13–14.
HOW THE BENEFITS CONNECT
You request an accelerated portion of the death benefit.
The cash received is less than the portion accelerated.
The death benefit, cash value, and loan value decrease.
Using one benefit may reduce or eliminate others. These are not additional amounts that can be added together. Sources: pages 5, 13–14.
THE PDF’S EXAMPLES, BY AGE
Page 5 shows examples of the discounted benefit when accelerating all available protection. It lists only the following ages: we do not calculate amounts for other ages.
TERMINAL ILLNESS · AGE AND AMOUNT
The summary does not say you must wait until that age. A request could be evaluated if the policy and rider are in force and their conditions are met.
The summary also does not say the benefit ends at age 65. The absence of a terminal illness amount at age 75 or 85 does not mean access is no longer available.
That cannot be assured. Page 5 shows that accelerated benefit at age 65 as an example; it cannot be applied to every age or diagnosis.
The medical requirement described: a physician’s certification of an illness or chronic condition reasonably expected to cause death within 12 months or less. The diagnosis alone does not set the payment.
The summary allows accelerating up to 100% of the available benefit, subject to a 1,500,000 USD limit on the death benefit accelerated for terminal illness, aggregated across all policies on the same person. This limit is not a promise of receiving 1,500,000 USD in cash: a discount applies, and payment depends on the evaluation, available benefit, and contract.
Limits may change and vary by state. Using an accelerated benefit reduces death benefit protection and policy values.
Sources: pages 5 and 13–14. This PDF is a summary, not the full rider: confirming all age requirements, exclusions, and amounts before or after age 65 requires reviewing the rider and obtaining an estimate from the insurer.
| Age | Terminal illness | Chronic illness / month | Critical illness OR critical injury | Alzheimer |
|---|---|---|---|---|
| 55 | Not illustrated | 25,130 | 1,000,000* | 1,352,522 |
| 65 | 1,500,000 | 30,000 | 1,000,000* | 1,500,000 |
| 75 | Not illustrated | 30,000 | 1,000,000* | 1,500,000 |
| 85 | Not illustrated | 30,000 | 1,000,000* | 1,500,000 |
*This is the printed example, not a minimum or a promise. Critical illness and critical injury share the stated limit; they are not two separate million-dollar payments. “Not illustrated” does not mean exclusion or zero payment.
The examples use current accelerated benefit mortality tables and 6.5% interest for that estimate; this is not a policy return rate. They differ from the annual value projections. Limits and assumptions may change, vary by state, and are subject to the contract. We do not multiply the monthly amount by an unillustrated duration.
This is the list page 13 identifies as potentially eligible events, subject to state approval and the rider’s definitions. The report refers to the contract for the complete list and exclusions; it does not establish that every case of these illnesses is covered.
An accident alone does not trigger an accelerated benefit. For example, a car accident involving traumatic brain injury could be evaluated under the critical injury rider if it meets the definition. This PDF does not establish that a fracture, impact injury, or any accident is covered.
Cancer at age 65: cancer appears in the critical event summary. It must meet the rider’s definition. The printed 1,000,000 USD example does not determine payment for that cancer: severity, impact on life expectancy, and other factors are evaluated; the result could be a small payment or none.
Heart attack at age 55: heart attack appears as a potential critical event. Its contractual criteria must be reviewed; the diagnosis does not guarantee the printed amount for that age.
Needing help bathing and dressing at age 75: these are two of the six activities listed for chronic illness. Certification by a licensed professional and compliance with the rider are required. The report shows 30,000 USD monthly at that age as a nonguaranteed example, with no total duration illustrated.
Explanatory examples, not evaluated claims. Sources: pages 5 and 13–14.
UNDERSTANDING A SITUATION
A guide to reading the report, not a claims procedure or an individual recommendation. Sources: pages 5, 13–14.
The FJR rider may increase accumulated value after at least two years in force if the insured or their spouse receives reproductive assistance for an eligible event. The PDF describes it as having no additional premium; definitions and exclusions must be reviewed. It is not one of the five ABR accelerated benefits above.
Source: page 15. No amount is shown because this demo does not contain a verified estimate of that benefit.
ABR appears in this illustration along with CMG, FJR, DBPR, LIBR, OPR, SAR, and AVE2023. ABRs are optional in the product; they are illustrated here. Issuance, state availability, eligibility, and final contracts must be confirmed. Full policies and riders determine terms, exclusions, and restrictions; this illustration does not replace them. Sources: pages 5, 13–15, and 33.
EXPLORE FURTHER
A loan is taken against policy values, subject to interest and contractual terms. Outstanding debt may reduce surrender value and the death benefit and increase lapse risk. This PDF does not illustrate loans or withdrawals: we show no figures or income strategy. Overloan protection is subject to conditions and a charge; it does not authorize borrowing the entire value without consequences.
The policy’s main purpose is death benefit protection, and insurance charges apply. An IRA is a retirement account whose treatment and restrictions depend on its type; its holdings determine its risk. A bank CD is a time deposit with interest and withdrawal terms. These are different tools; this demo does not compare returns or recommend an individual choice.
The single-payment comparison is awaiting a verified illustration. No results are available in this demo.