Full Disclosure Survivorship Life Report

A careful analysis of the IRR measurements indicates which policies are designed (in an illustration at least) to build current cash values, guaranteed cash values or death benefits. You will notice at the end of the SVL and SUL charts that there are columns showing how the policy would have performed under an increasing death benefit option. The cash value of an increasing death benefit policy, while not listed, would be lower because of the added costs of insurance. The whole life policies have naturally rising death benefits due to the paid-up additions dividend option.

Full Disclosure software includes complete policy specifications and features, current and guaranteed costs and expenses, and a wide sampling of illustrations. Policy data in these excerpts is current as of Nov. 1, 2006. Standardized annual premiums are the same between UL and VL illustrations, and the VL illustrations are based on a 10% gross rate of return with average subaccount expenses "netted out" of the projected values.

Because survivorship life products are designed for certain objectives, whether maximum cash accumulation or none at all, for example, we have summarized what each is designed for. Some have simplified underwriting, short-term values, living benefit riders or many others. We not only examine a product's premiums and illustrated values but look at what it is designed to do best. That is the key to any successful comparison in this time of product specialization. Also, the market is adding new hybrid, indexed and guaranteed premium variations (of flexible premium products) to the mix. Often, simply looking at the numbers doesn't tell enough.

Whether it's for family business continuation, funding a grandchild's education, providing for a special needs child who needs care after both parents die, or boosting a charitable-giving intention, there are a wealth of opportunities for a product at the critical juncture in time that is the death of the second spouse. It's also a good way to leave a legacy of giving and opportunities to others via a school endowment, for example, that appeals to our own need to know that we can continue to do good even after we are gone.