Product Design

Term

Insurer

  • Massachusetts Mutual Life Insurance Company (MassMutual)

Availability

  • Available for both qualified and non-qualified markets.
    • Non-qualified policies are issued on a gender-distinct basis in all contractual states, except Montana (MT)
      • In Montana (MT), non-qualified policies are issued unisex
    • Qualified policies are issued unisex in all contractual states
  • Unavailable for Guaranteed Acceptance Program for Executives (GAPE).
  • Unisex policies may be requested for non-qualified employer-sponsored plans.

Risk Classifications (Premium Ratings) for Satisfactory Evidence of Insurability (Underwriting)

  • Preferred
    • Ultra Preferred Non-Tobacco
    • Select Preferred Non-Tobacco
    • Select Preferred Tobacco
  • Standard
    • Non-Tobacco
    • Tobacco

Substandard Premium Rating (Rated Insured)

  • A base policy may be rated (due to the medical condition of the insured party at time of underwriting) at 1.5x, 2x, or 3x the standard premium rate.
  • The following are the types of substandard premium ratings per risk classifications:
    • Permanent Table Rating A, B, C, D, E, F, H, or J
      • Non-Tobacco
      • Tobacco
    • Temporary Non-Medical Flat Extra
      • Select Preferred Non-Tobacco
      • Select Preferred Tobacco
    • Temporary Medical Flat Extra
      • Non-Tobacco
      • Tobacco
    • Permanent Non-Medical Flat Extra
      • Select Preferred Non-Tobacco
      • Select Preferred Tobacco
    • Permanent Medical Flat Extra
      • Non-Tobacco
      • Tobacco
    • Military Aviation Flat Extra
      • Select Preferred Non-Tobacco
      • Select Preferred Tobacco
      • Non-Tobacco
      • Tobacco
    • Aviation Exclusion Rider
      • Ultra Preferred Non-Tobacco
      • Select Preferred Non-Tobacco
      • Select Preferred Tobacco
      • Non-Tobacco
      • Tobacco
    • Avocation Exclusion Rider
      • Ultra Preferred Non-Tobacco
      • Select Preferred Non-Tobacco
      • Select Preferred Tobacco
      • Non-Tobacco
      • Tobacco

Rating Adjustment

  • Permanent table ratings and permanent flat extras drop off a policy after 20 policy years or at the attained age 65 of the insured party, whichever occurs first
  • Risk classifications are recalculated if the rating drops due to satisfactory evidence of insurability (underwriting) by the insured party

Face Value

  • The minimum acceptable face value is $100,000

Face Value Band Basis

  • Premiums vary based on the following face value bands:
    • Band 1 = $100,000 – $249,999
    • Band 2 = $250,000 – $499,999
    • Band 3 = $500,000 – $999,999
    • Band 4 = $1,000,000 – $4,999,999
    • Band 5 = $5,000,000+
  • If a partial conversion from temporary to permanent coverage results in the existing term life insurance policy moving into another band, premiums will continue to be calculated based on the previous or higher face value band basis

Face Value Segment Increase

  • Unavailable

Face Value Segment Decrease

  • Available upon request of the policyowner, and subject to the policy of the insurer at the time of the request
  • Unavailable in the initial policy year
  • A result of a partial conversion from temporary to permanent coverage during the conversion period

Termination

  • The contract will terminate if the face value drops below the minimum acceptable face value, for any reason

Charges

  • Policy Fee
    • The annual policy fee is $75.
    • The policy fee is not commissionable.

Premium Modal Factors

  • Monthly = 0.0870
  • Quarterly = 0.2589
  • Semi-Annual = 0.5117
  • Annual = 1.0000

Reinstatement

  • Before the expiration date of the policy, the policy may be reinstated within 5 years of the lapse date
    • Prompt Reinstatement
      • A policy may be promptly reinstated, without satisfactory evidence of insurability (underwriting) by the insured party, within 31 days after the expiration of the grace period
        • All overdue premiums must be paid
    • Later Reinstatement
      • A reinstatement that occurs more than 31 days after the expiration of the grace period requires satisfactory evidence of insurability (underwriting) by the insured party
      • Subject to repayment of back premiums, plus 6% interest compounded annually
      • A new 2-year contestability period will begin after a later reinstatement
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