Well-rounded protection

An indexed whole life policy can provide not only access to cash value, but also important protection and flexibility

Learn more about using IWL for protection

It’s easy to focus on an indexed whole life policy’s accumulation potential. After all, with growth based partially on market returns, its ability to increase assets is one of the product’s major selling points. But that’s not all it’s capable of, and it’s worth remembering the important roles the product can play in protecting a client’s loved ones and adding flexibility to adapt to life’s changes.

Meet Jason

Jason is a 44-year-old IT professional and single father to 7-year-old Ryan. Jason already has some basic term insurance and a second life policy through his employer, but wants to add more coverage – if something happens to him, he needs to be sure Ryan’s basic needs and education will be covered. But Jason is a planner by nature. He also wants to make sure that he’s able to:

Finish making premium payments during his prime working years
Access his policy’s assets, whether he needs them to supplement retirement income or to cover expenses if his health falters somewhere down the line

Jason’s financial professional recommends a Prestige Indexed 10 Pay whole life policy. It will be paid up in just 10 years, and is capable of providing the death benefit coverage Jason wants. But with market-based growth, it may also be able to provide access to cash value,¹ and offers an Accelerated Benefit Rider should Jason face a chronic or terminal illness.

Jason elects to buy the policy with $500,000 in death benefit coverage, which results in annual premium payments of $33,450. Based on current, non-guaranteed assumptions, here is what this could mean for Jason’s future.

Jason’s indexed whole life policy was able to provide income, protection and flexibility.

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¹ Access to policy cash value is through policy loans and surrenders, which will reduce the death benefit.

² Hypothetical example assumes a 44 year old male, Preferred Nonsmoker rate class. Assumes 5.60% illustrated interest rate. Results depicted are based upon current, non-guaranteed rates. Non-guaranteed results may be more or less favorable than those shown.

The optional Accelerated Benefit Rider provides for a partial acceleration of the policy death benefit in the event that the base policy insured is certified by a licensed physician as being chronically ill or terminally ill. By taking an accelerated death benefit payment, a lien is created against the policy death benefit. The lien accrues carrying charges at an adjustable rate we declare. The lien, including the lien carrying charges, will be deducted from the total death benefit otherwise payable to the policy beneficiary(ies) and will reduce the cash value available for policy loans, surrenders, or the exercise of any non-forfeiture option. The required premium for the policy must still be paid even if an accelerated death benefit is taken. If an accelerated benefit is taken and the policy lapses or otherwise terminates, a taxable event may occur.

Any accelerated benefit taken under this rider may be taxable. Clients should consult their tax advisor on all tax matters. Adding the rider to a life insurance policy or the taking of rider benefits may affect eligibility for certain public assistance programs and government benefits. The Accelerated Benefit Rider is not designed to be a substitute for long-term care insurance, health insurance, or nursing home insurance. Rider benefits and features may vary by state.

Indexed whole life insurance is issued by Ohio National Life Assurance Corporation. Guarantees are based upon the claims-paying ability of the issuer. Policy, policy features and rider availability vary by state. Issuer not licensed to conduct business in NY. ©2022 Ohio National Financial Services, Inc.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. D-828101 8-22