PermaTerm 20
a new idea
from
PermaTerm 20
The “No-Loss” Term
This product was designed for the individual
who needs term insurance for a specific
period of time but would also like the
option of not “wasting” his/her premiums.
PermaTerm 20
As the name implies, PermaTerm 20 is a
20 year term that can become
a permanent insurance plan
2 different ways.
PermaTerm 20
The “basic” plan includes a conversion option that
can be exercised anytime between the second
and 15th year prior to age 65.
The full amount of coverage can be converted to a
permanent plan without evidence of insurability.
New commissions are generated by the conversion
on the increase in premium.
PermaTerm 20
Historically, premiums paid for term
insurance went “out the window” unless
the insured died during the covered period
or paid a high additional premium for a
Return of Premium Rider.
Now, there is a new way for an insured to
conserve the premiums paid during the
term period.
PermaTerm 20
The “No Loss” version includes an additional nonforfeiture option that, at the end of 20 years,
automatically converts the policy to a reduced
paid-up policy equal to a full “refund” of the
premiums paid during the 20 years. By choosing
this version, an insured does not waste the
premiums paid for term insurance and builds up
a fund that can be used to cover his final
expenses later in life. Combined with an annuity,
it can also become a great estate building tool.
PermaTerm 20
PermaTerm 20
Basic
20 years of coverage
Convertible 1st 15 years
prior to Age 65
Base Plan
PermaTerm 20
“No Loss”
20 years of coverage
Convertible 1st 15 years
prior to Age 65
Base Plan with “No-Loss” option
Paid-Up amount equal to ROP
PermaTerm 20
“No-Loss Option”
Example
Reduced paid up insurance =$12,000
Premiums paid over 20 years
$50 Mo. X 12 X 20 years = $12,000
PermaTerm 20
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$25,000 minimum face amount
Tobacco/Non Tobacco Rates
Issued Standard through Table 2
$50 commissionable policy fee
2 premium bands:
$25,000 - $99,000 & $100,000 +
Non-Med to $100,000 to age 51
HIV testing required at $100,000 (HOS)
PermaTerm 20