First Investors Interest Sensitive Whole Life
For generations, millions of individuals have turned to whole life insurance to meet their life insurance needs. With whole life, as long as your premiums are paid in a timely manner, you are insured for your lifetime (up to age 121), your coverage cannot be canceled and the premium remains fixed for the life of the policy. In addition, whole life builds value on an income tax-deferred basis, which can be used to help fund expenses during your lifetime. With First Investors Life's Interest Sensitive Whole Life, your Accumulation Value earns a guaranteed1 minimum annual interest rate of 4% plus the potential of additional interest earnings from Excess Interest Rates declared by the Company, all on an income tax-deferred basis.
What is Interest Sensitive Whole Life?
First Investors Life's Interest Sensitive Whole Life (ISWL) is a permanent whole life insurance policy that provides life insurance coverage along with income tax-deferred Accumulation Value. It is appropriate for individuals who have permanent life insurance needs and prefer the consistency of a fixed premium.
Advantages
Some of the advantages of having an Interest Sensitive Whole Life policy are:
- Lifetime of Protection — ISWL is a permanent life insurance policy. If the premiums are paid on a timely basis, coverage will last a lifetime (up to age 121). Your death benefit will never decrease as long as there are no outstanding loans.
- Fixed Premium — Your premiums will stay at the same level as long as the policy is in force, regardless of economic conditions or the state of your health.
- Accumulation Value — The fund that builds in an ISWL policy is called the Accumulation Value. The Accumulation Value grows at a guaranteed minimum interest rate of 4% plus the potential of a Company-declared excess interest rate, all income tax deferred.
- Access to Your Accumulation Value — Subject to policy provisions, Policy Loans provide access to your Accumulation Value for any reason at any time.
Who Can Benefit From Purchasing an ISWL Policy?
As your First Investors representative can explain, anyone who…
- has a need for lifetime insurance protection.
- prefers the security provided by the policy's guarantees.
- is interested in the policy's tax-deferred Accumulation Value.
- likes to know their premiums will never increase.
When is Interest Sensitive Whole Life Appropriate?
For Personal Life Insurance Needs — If you are going to need life insurance to last for an indefinite period of time, perhaps for the rest of your life, ISWL may be the right choice for you. Some of its possible uses are:
- Permanent Life Insurance Protection — For family members from ages 0 – 80.
- Mortgage Protection — Benefits can be used to help pay off mortgages and other outstanding debts.
- Estate Planning — ISWL can provide funds to cover estate expenses and help avoid the need to sell assets and/or borrow money to cover these expenses.
- Charitable Giving — A policy can enable you to make a significant donation to your favorite charity upon your death.
For Business Insurance Needs — ISWL can be an effective way to safeguard your business, and also serve as an attractive employee benefit. Businesses can use ISWL for:
- Key Person Insurance — The policy would provide funds to assist in the continuation of business in the event of the death of an individual which causes a financial strain to the business.
- Executive Bonus arrangement — You can reward and help retain valued employees by paying for a permanent life insurance policy, like ISWL, in which the employee retains all ownership rights.
- Split Dollar agreements — An employer and employee agree to share the cost of the premium of an ISWL policy as an added employee benefit.
- Buy/Sell Agreements — ISWL can be used to provide the funds needed to purchase the ownership interest of a deceased owner or partner.
As a permanent life insurance policy, ISWL builds an Accumulation Value on an income tax-deferred basis. Over many years, your Accumulation Value may accumulate to a significant amount of money. The Accumulation Value may be used as a supplemental source of funds to:
- Assist with paying for a child's education
- Help when buying a new home
- Provide additional funds at retirement
Other ISWL Features
- Interest Rate Crediting: An ISWL policy provides two ways for the Accumulation Value to grow:
- The security of a guaranteed1 minimum interest rate. First Investors Life credits a guaranteed annual interest rate of 4.00% to the Accumulation Value of your ISWL policy.
- The potential for additional Accumulation Value growth from declared excess interest rates. First Investors Life may from time to time declare an excess interest rate that will automatically be included in the calculation of the Accumulation Value.
- Faster Growing Accumulation Value: The deduction of current cost of insurance charges, which are generally lower than the guaranteed maximum rates, allows for faster and higher Accumulation Value growth.
- Option to Suspend Premiums: There may come a time when it may be convenient for you to not have to pay your ISWL premium. If that circumstance occurs and your Accumulation Value meets the policy’s requirements, you may elect to suspend premium payments for as long as your policy remains qualified. Choosing whether or not to suspend is an important decision because suspension of premium payments will slow the growth of your Accumulation Value. Please be sure to discuss it with your First Investors representative.
Tax Advantages
Under current tax law, life insurance offers the following tax advantages:
- Income Tax-Free Death Benefit — Perhaps the most important benefit of a life insurance policy like ISWL is that death benefits paid to beneficiaries are not subject to federal income tax. In addition, the death benefit is generally not subject to the costs and delays of probate if paid to a named beneficiary or beneficiaries.
- Income Tax-Deferred Growth — For life insurance policies like ISWL, the Accumulation Value accumulates on a tax-deferred basis inside the policy. Tax deferral allows the Accumulation Value to grow more quickly and to higher levels than if they were currently taxed.
Surrender of Your ISWL Policy
An ISWL policy may be surrendered at any time. However, you should know that under current tax law, surrender of a policy like ISWL may be taxable to the extent that the cash you receive exceeds the premiums you have paid. In addition, a surrender of the policy in the first twenty years or up to age 90 will incur a surrender charge. The amount of the surrender charge, which will be subtracted from the Accumulation Value, will depend upon how long the policy has been in force, your age and underwriting classification. Surrendering a policy is an important decision with possible tax and financial consequences. First Investors Life recommends that you consult your personal tax adviser before requesting a surrender of your policy.
Optional policy riders
There are two additional coverage riders available with ISWL:
- Waiver of Premium: If you purchase this rider and subsequently become disabled and are unable to perform any work for a period of six months or longer, the policy’s premiums will be paid for you. Benefits are retroactive to the date the Insured was declared disabled, provided the disability began prior to your age 60-policy anniversary.
- Accidental Death Benefit: This rider pays an additional death benefit, up to two times the face amount of the policy (subject to policy and rider limitations) in the case of a death resulting from accidental bodily injury, before your age 70-policy anniversary.
1 All guarantees are based upon the financial strength and claims-paying ability of First Investors Life Insurance Company.
ISWL is available under the following form numbers by state
| ISWL-2 (07/06)(AL) | ISWL-2 (07/06)(AR) | ISWL-2 (07/06)(AZ) | ISWL-2 (07/06)(CA) |
| ISWL-2 (07/06)(CO) | ISWL-2 (07/06)(CT) | ISWL-2 (07/06)(DC) | ISWL-2 (07/06)(DE) |
| ISWL-2 (07/06)(FL) | ISWL-2 (07/06)(GA) | ISWL-2 (07/06)(IA) | ISWL-2 (07/06)(ID) |
| ISWL-2 (07/06)(IL) | ISWL-2 (07/06)(IN) | ISWL-2 (07/06)(KS) | ISWL-2 (07/06)(KY) |
| ISWL-2 (07/06)(LA) | ISWL-2 (07/06)(MA) | ISWL-2 (07/06)(MD) | ISWL-2 (07/06)(ME) |
| ISWL-2 (07/06)(MI) | ISWL-2 (07/06)(MN) | ISWL-2 (07/06)(MO) | ISWL-2 (07/06)(MS) |
| ISWL-2 (07/06)(NC) | ISWL-2 (07/06)(ND) | ISWL-2 (07/06)(NE) | ISWL-2 (07/06)(NH) |
| ISWL-2 (07/06)(NJ) | ISWL-2 (07/06)(NM) | ISWL-2 (07/06)(NV) | ISWL-2 (07/06)(NY) |
| ISWL-2 (07/06)(OH) | ISWL-2 (07/06)(OK) | ISWL-2 (07/06)(OR) | ISWL-2 (07/06)(PA) |
| ISWL-2 (07/06)(RI) | ISWL-2 (07/06)(SC) | ISWL-2 (07/06)(TN) | ISWL-2 (07/06)(TX) |
| ISWL-2 (07/06)(UT) | ISWL-2 (07/06)(VA) | ISWL-2 (07/06)(VT) | ISWL-2 (07/06)(WA) |
| ISWL-2 (07/06)(WI) | ISWL-2 (07/06)(WV) | ISWL-2 (07/06)(WY) |
