Term Life and Whole Life FAQs | Pacific Wealth Solutions
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Insurance Technology, also referred as “InsurTech,” is the use of technology innovations designed to minimize cost and maximize efficiency for the current insurance industry model.

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Big-data analysis is the process to identify the most optimized and highest performing solution, based on the desired parameter, from a very large set of data points. Being able to sort through high amounts of data quickly is extremely important for life insurance purchases, because there are more than 781 life insurance carriers, 1500+ different life insurance products, and 10+ banks who could finance a purchase, resulting in more than 156,000,000 (yes, 156 million, you read that right) potential investment combination data points for the consumer to choose from.

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Quantitative mathematics modeling is a process to project outcomes of important parameters (returns, death benefits, interest rates, market index rates…etc.) based on a variety of factors under many different conditions, so that any projections or assumptions are supported by a certain degree of mathematical confidence interval, not based purely on experience or numbers on a carrier-given illustration. We believe it is important for all decision-making processes to be backed by a scientific approach and solid mathematics, and we always strive to reach as close to 99% confidence interval as possible for all our models.

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Stress testing is the process to test the ability of a given financial strategy to withstand the pressures of a market crisis or other adverse impacts to still deliver desired positive results. 

It is important to sufficiently stress-test any scenarios where there is substantial uncertainty in important variables such as index crediting rates, dividends, interest rates, or varying costs of insurance. 

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Term life insurance, also being referred to as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the policy to terminate.

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Permanent life insurance is an umbrella term for life insurance policies that do not expire. The two primary types of permanent life insurance are whole life and universal life. Whole life insurance offers coverage for the full lifetime of the insured, and its savings can grow at a guaranteed rate. Universal life insurance also offers a savings element in addition to a death benefit, but it features different types of premium structures and earns based on market performance.

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The main differences between a term life insurance policy and a permanent insurance policy are the duration of the policy, the accumulation of a cash value, and the cost. Please refer to the comparison table on our website.

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With so many options in the insurance market, here are some things you want to consider when you choose an insurance carrier:

  • Online reviews or customer reviews if you know any

  • Credit Ratings and other relevant rankings such as A.M. Best rating or S&P rating

  • Financial stability and strength

  • Service models and number of offices locally

Answer :

Premium financing is the lending of funds to a person or company to cover the cost of an insurance premium. Insurance premium financing is a well – established, high margin, high growth commercial lending activity. U.S. financial institutions have entered the industry since year 2000 controlling more than 80% of the whole market.

Answer :

The benefits of premium financing can include the following:

  • Favorable loan rate and terms

  • Leverage for large policy

  • Positive leverage return yields high return on policy performance

  • Achieve estate planning goals

More information please contact our experts.

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  • Need insurance for estate-planning, asset protection, wealth accumulation, liquidity at death, or business purposes
  • Wish to keep liquidity and not to use existing capital to pay the premiums

  • Is insurable at standard health rating or better

  • Preferably has minimum net worth of $5M or higher

  • Satisfies the carrier’s underwriting regulations

Answer :

You can choose to pay installment(s) for 1-3 years. This will reduce your out-of-pocket amount and increase liquidity. After 3 years premium paid, the annual premium in the following years are paid by a financing bank partnered with our company. Another way is to start premium financing in the first year and use your personal assets, including but not limited to real estate, investment account, savings etc. as collateral.

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Some people look for cheap term life insurance policy to cover their basic needs should they die prematurely. This is fine. However, there is a certain percentage of people who are utilizing a life insurance contract in a much more consequential way, and this type of policy include not only premium and death benefit, but also cash value.

Advanced planning plans will most likely require a very knowledgeable agent, and both a tax and financial professional, to ensure the long-term benefits are properly organized, especially when used for something other than permanent death benefit. Contact us to learn how Pacific Wealth Solutions can help.

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ILITs are constructed with a life insurance policy as the asset owned by the trust. Once the grantor contributes property or life insurance death benefits to the trust, he or she cannot change the terms of the trust or reclaim any of the properties held within.

As an alternative to naming an individual beneficiary, ILITs offer several legal and financial advantages to heirs, including favorable tax treatment, asset protection, and the assurance that the benefits will be used in a manner concurrent with the benefactor’s wishes.

ILIT

Answer :

Based on the personal conditions, carrier criteria, and needs of insurance, our dedicated underwriting team will analyze in our database for the best solution a foreign national can qualify for in the U.S. life insurance market, allowing clients to fully meet the needs of wealth accumulation, wealth inheritance, overseas asset allocation, retirement and pension.

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In a revocable trust, the trust settlor may modify the terms of the trust at any time, including the trust beneficiary; in an irrevocable trust, the trust settlor can appoint a trust protector, who has the power to modify the trust and the trust structure. Therefore, the beneficiary can be changed.

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One possibility is that you will be provided with a paid-up term life insurance policy. This policy will generally be based on the amount of money that you have already paid into the whole life insurance. The benefit of the insurance will be less than what you would have received with the whole life insurance. In some cases, the life insurance company will give you the cash value of your policy and allow the policy to lapse.

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Pacific Wealth Solutions partners with MassMutual, a top rated insurance carrier, to present you Coverpath, a new platform that gives customers a modern, efficient way to acquire and process convertible MassMutual term life and whole life policies.

Answer :

Coverpath supports the following MassMutual Whole Life products: Whole Life 100, Whole Life 65, Limited Pay 10, Limited Pay 12, Limited Pay 20.

Issue Age Face Amount Product
0-59

61-64

$25k* – $3mm**$25k* – $1mm WL 10, WL 12, WL 20, WL 100
0-49   $25k* – $3mm** WL 65

*The rate class for policies of $25k must be either Standard Non-Tobacco or Standard Tobacco.

** For juveniles, face amount generally may not exceed $1mm unless an exception is granted.

Answer :
Issue Age Face Amount Product
18-5961-64 $100k – $3mm$100k – $1mm Term 10, 15, 20
18-59(55 for tobacco class) $100k – $3mm Term 25
18-55(50 for tobacco class) $100k – $3mm Term 30
18-54 $100k – $3mm Term 15 ECP, 20 ECP, 25 ECP
18-54(45 for tobacco class) $100k – $3mm Term 30 ECP
18-50** $100k – $3mm ART*
  • Annually Renewable Term (ART) provides annually renewable term insurance protection with guaranteed rates only in all policy years (no current rates, automatically renewable to age 80, convertible during policy years 1-10). Premiums increase annually with age.
  • Maximum age for ART is temporarily set at 50 during COVID-19 pandemic.
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Yes, Coverpath supports non-US citizens per MassMutual’s non-US Citizen policy.

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The Coverpath system runs an algorithm, which takes about one minute to determine an initial decision. The algorithm reviews the answers to the application questions and runs several other checks.

There are four possible outcomes once the algorithm is complete:

  1. Express path
    • Immediate acceptance with no medical exam required (‘fluidless process’).
    • Issuing the policy or paying its benefits depends on the applicant’s insurability, based on their answers to the health questions in the application, and their truthfulness.
  2. TLIC (Temporary Life Insurance Coverage)
    • Approved for temporary coverage up to $1mm
    • Medical exam needed within 120 days
    • Initial premium equal to one month required
  3. ‘Lite Touch’ express path “Lite Touch”
    • Combined human and algorithmic underwriting process where qualifying applications will be routed to an underwriter before exams are ordered.
    • The underwriter will make a decision within 24-48 hours whether the client qualifies for Express Path (fluidless) or if labs are required.
  4. Exam Required (No temporary Life Insurance Coverage)
    • Sometimes called Knock out in underwriting parlance
    • Medical exam needed within 120 days
Answer :

Yes, all information collected on our website are strictly forbidden from sharing except for the sole purpose of life insurance purchase. All the information and medical results collected for life insurance purchase is fully protected under the HIPPA Privacy Rules, which makes your information only available to the life insurance company and the Medical Information Bureau (MIB).