Cost of Insurance Options
Part of the premium you pay into your policy covers the cost of insurance protection. This includes the cost for the primary and additional lives insured, as well as any optional benefits you select. Life insurance costs generally increase as you get older.
Universal life insurance allows you to manage this increase with our cost of insurance options:
- The annually increasing rate (AI) increases annually as your age increases, but the rate scale is guaranteed for the duration of the coverage. AI cost of insurance is lower in the early years, allowing you to accumulate more of your premium in your chosen interest options and accelerate the growth in your total account value in the early years.
- Limited-pay cost of insurance (10, 15 and 20 years).
With limited-pay cost of insurance options, you can select a set cost of insurance period of 10, 15 or 20 years. Once elected, the cost of insurance rate is guaranteed for the duration of the coverage, with guaranteed cash value beginning after the fifth coverage anniversary and continuing for the duration of the coverage.
- The guaranteed level cost of insurance rate (level COI) is locked-in for the duration of the coverage, allowing you to spread your insurance costs evenly over the life of the policy.
For specific information about what life insurance can do for you and how you can benefit from owning a policy, contact your financial security advisor.