Architect Universal Life

Universal Life (UL) is a Flexible Premium Insurance Contract with Investment Opportunities. It offers a dynamic combination of permanent life insurance and a highly flexible savings component. It allows you to custom design your client’s insurance coverage to fit their lifestyle, budget and savings objectives.

The account value grows, allowing your clients to realize returns that may be more significant than those offered by traditional vehicles. In addition to providing security for the family, it may be used to provide for a child’s education, retirement savings or any other savings need that the client may have.

Flexible premium means there is no set premium amount or number of premiums required from the policyowner. There is a minimum standard premium or suggested premium for each policy however, no payment is required if there are sufficient funds to pay the monthly expenses.

Payments received from the policyowner are added to the Investment portion (Fund) of the policy and are called deposits

As long as there is sufficient value in the Fund to pay expenses the policy will not lapse.
Deposits can be made at any time and are added to the Fund Value.

Some Universal Life policies have investment options, similar to mutual funds. Others have Interest Bearing Accounts.

All of the current BF&M Universal Life Insurance policies have interest bearing accounts, similar to the Pension’s Guaranteed Interest Account.

Interest is credited to the Fund daily.
The interest rates earned on the Fund Value are generally between 4 and 6%.
Debits are made to the fund each month. Debits reduce the policy’s’ fund value.

Debits pay for the monthly Cost of Insurance (COI),Riders Benefits and Administration fees
These are called “Expenses”.
Expenses can be compared to the expenses associated with a standing order at your bank.

The Cost of Insurance (COI) increases at each policy anniversary and the method used is Yearly Renewable Term.
The COI is calculated on the Net Amount At Risk.

BF&M’s Universal Life has 5 death benefit options,

• Level,
• Increasing,
• Increasing with a Cap,
• Variable,
• Level with Return of Deposit.

• The Increasing Death Benefit pays the Basic Sum Insured and the Fund value to the beneficiary at time of Life Claim.

For example: The Policy has a Basic Sum Insured of $100,000.00 and a fund value of $15,000.00 if a claim occurs the total benefit payable is $115,000.00. In this example the Cost of Insurance is charged on the Net Amount at Risk of $100,000.00. The net amount at risk is less than the total benefit payable as there are no Insurance Expenses charged on the fund value.

The Level Death Benefit pays the Basic Sum Insured, only.

For example: The Policy has a Basic Sum Insured of $100,000.00 and a fund value of $15,000.00, if a claim occurs the total benefit payable is $100,000.00 In this example the Cost of Insurance is charged on the Net Amount at Risk of $85,000.00. The net amount at risk is less than the total benefit payable as there are no Insurance Expenses charged on the fund value.

All cost of insurance & deductions occur on a monthly basis regardless of the policy frequency. Beginning of the month equals the policy monthly anniversary date. This could be any day between the 1st and last day of the month.

• Ordinary or whole life is bundled
• UL is unbundled
• In UL all elements of the plan are exposed
• P+i-m-e=$
• Premium or deposit + investment earnings –mortality –expenses = Cash

Minimum Policy for age 18+ $ 250,000
Ages 0-18 $ 100,000

Guaranteed values are based on 4.5% first year and 3% THEREAFTER. Actual rates will vary. At present only guarantees are available.