Of the rest, 8% have taken reduced benefits and only 5% have chosen the non-forfeiture
In last month's column, we explored how whole life can be funded in a way that could guarantee a paid-up policy either contractually or through the use of a non-forfeiture
Securities law has generally recognized that products that satisfy the requirements under state law relative to the standard non-forfeiture
law should not be treated as securities because the insurance company bears the investment risk.
In addition, they could consider contingent non-forfeiture
provisions, so if another 90% increase comes down the pike, at least they could salvage some coverage rather than forfeit all premiums paid.
In particular, one fundamental aspect of traditional life insurance that cannot be offered by a family takaful plan is the non-forfeiture
Inflation of Daily Benefit Compound lifetime: 5%; Simple lifetime: 5% Benefit Periods 2 years, 3 years, 5 years and 10 years Admission / benefit triggers Chronically ill (expect to need services for at least 90 days), cognitive impairment, unable to perform 2 out of 6 ADLs Additional type of benefits Adult day care, alternate plan/ provided for base policy: informal care, assisted living, bed reservation, durable medical equipment, home modification, homemaker services, hospice care, respite care Optional Riders Non-forfeiture
Average application processing 22 days time The State Life Insurance Company (800) 275-5101 www.
Under the amendment, Bellamy said, to be exempt from Rule 151A, underwriters and agents selling indexed products must not sell a variable product; they must comply with state non-forfeiture
laws; and they must comply with a suitability standard.
These features include spousal discounts, respite care, hospice care, caregiver training, bed reservation, medical equipment, cognitive reinstatement, non-forfeiture
benefits, case management and referral services.
The department added this regulation to "require the use of the 1980 CSO Mortality Table for determining the minimum standard of valuation of reserves and the minimum standard of non-forfeiture
values for preneed insurance products.
May 24 -- Legislation to amend the existing annuity non-forfeiture
law and to strengthen consumer protection requirements for equity-indexed products passed the Senate early last month and was referred to the Assembly Insurance Committee for review on May 11.
1 This is the Guaranteed Minimum Value whereby the purchase payment accumulates at the non-forfeiture
rate set at the time of annuity purchase and will never be less than 1.
Another way to utilize the Paid-Up Additions Rider could be to guarantee a paid-up policy using the contract's non-forfeiture