Skip to content
- Provides long-term permanent coverage of financial life protection for the lifetime of the insured party.
- Payment of guaranteed premiums by the policyowner are level (fixed) for a limited time period, either a 10-year, 12-year, 15-year, or 20-year term or up to the attained age 65 or 100 of the insured party.
- This type of base policy can also be fully funded (paid-up) by a single premium payment.
- The death benefit is level (fixed).
- When the insured party dies, the insurer is legally bound to pay a guaranteed death benefit to a designated beneficiary.
- If the policy expires (due to the endowment of the policy) or lapses (cancels due to non-payment of premium), the insurer is not legally bound to pay a death benefit.
- This type of base policy provides both guaranteed and non-guaranteed living benefits such as a guaranteed cash value savings account and non-guaranteed dividends, but lacks credited interest and a money market investment account.
- This type of base policy is advantageous to a policyowner with a constant stream of income and/or fixed expenses, and holds a conservative financial risk tolerance.