What IUL Offers
Death Benefits
-
Permanent death benefit protection for your loved ones
-
Flexible coverage and premiums
Living Benefits
Living benefits to provide resources in the event of a qualifying terminal illness, chronic illness, critical illness, or critical injury — or a qualifying diagnosis of Alzheimer's disease or Lewy Body Dementia
Lifetime Income Benefit
Optional Lifetime Income Benefit Rider provides the potential for guaranteed income for life
Diversified choices
Multiple index crediting strategies offer diversified choices for cash values
Cash value & protection
-
Cash value accumulation potential
-
Protection from market losses
Protect What Matters Most
BHB provides an income tax-free benefit to your beneficiaries plus access to cash value during your lifetime.
Flexible Coverage
Compared to other permanent life insurance products, indexed universal life is perhaps the most flexible. That's because it lets you adjust the amount of insurance you own6 – and the level of premiums you pay – to best suit your changing needs.
There is also the potential to build cash value in your policy on a tax-deferred basis, which you can use during your lifetime. For example, you have the potential to take policy loans and withdrawals for sudden emergencies or for retirement income.
And because FlexLife is an Indexed Universal Life product, your policy values can be credited interest based in part on crediting strategies tied to major market indexes, such as the S&P 500®.
Flexible Death Benefits
FlexLife offers two death benefit options:
-
Level Death Benefit, where the death benefit stays constant.
-
Increasing Death Benefit, where the protection increases as your policy's cash value grows.
Should your needs change after you've selected a death benefit option, you may switch options.8 For example, as your family grows you may feel the need for additional protection. By switching to an increasing death benefit amount your death benefit increase will occur as your cash value increases, which is much more convenient than buying additional insurance policies. Or, if your protection needs diminish and
you want to focus on growing cash value only, you can choose to lower your death benefit so that more of your premiums are directed to building cash value.
Helping Meet Lifetime Needs
Access to Cash Value
Your FlexLife policy’s cash value has the potential to grow, tax-deferred, over time. Cash value is different than your death benefit. If sufficiently funded, cash
value can be accessed through policy loans and withdrawals to help meet a wide range of financial needs, including:
• Financial emergencies and opportunities
• Reducing premiums
• Retirement income
Income for Life
Retirement is about more than what you save. It’s also important to make your income last a lifetime. FlexLife,
with the Lifetime Income Benefit Rider, can help you turn your policy's cash value into retirement income that you can never outlive.
​
The Lifetime Income Benefit Rider is automatically added to your policy at issue. Once conditions are met to exercise the rider, your income is guaranteed for life.
Income payments will lower the death benefit and cash value of your policy, but a portion of both is retained for
your lifetime.
Illness or Injury
Accelerated Benefits Riders are optional, no-additional cost riders that can allow you to access all or part of
the death benefit while you are living in the event of a qualifying terminal illness, chronic illness, critical illness, or critical injury — or a qualifying diagnosis of
Alzheimer's disease or Lewy Body Dementia.
You can choose how to use your benefit, including for:
Household Expenses
Home Modification
Nursing Home/ Adult Day Care
Regular Bills
Accelerated Benefits Riders
Accelerated Benefits Riders (ABRs) are optional, no additional cost features that allow you to access all or part of your death benefit in the event of a qualifying terminal illness, chronic illness, critical illness, or critical injury — or a qualifying diagnosis of Alzheimer's disease or Lewy Body Dementia. Depending on where you live, you can use the benefit for any expenses, including but not limited to nursing home care, household bills, living expenses, and home modifications. There are no restrictions on benefit usages with the exception that in the state of Massachusetts, ABR benefits for chronic illness can only be used to pay for expenses incurred for Qualified Long-Term Care services, which are defined as the necessary diagnostic, preventative, therapeutic, curing, treating, mitigating and rehabilitative services, and maintenance or personal care services that are required by a chronically ill individual and are provided pursuant to a plan of care prescribed by a licensed health care practitioner. Accelerated Benefit Riders are optional, may be subject to underwriting, exclusions and/or limitations, and may not be available in all states. Receipt of accelerated benefits reduces the death benefit and cash value (if any) otherwise payable under the policy, may be a taxable event and may affect your eligibility for public assistance programs, such as medical assistance (Medicaid), Aid to Families with Dependent Children, and Supplemental Security Income. Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect you, your spouse and your family’s eligibility for public assistance. This rider is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Whether such benefits qualify depends on factors such as your life expectancy at the time benefits are accelerated or how benefits are used. The actual payment you receive will be less than the portion of the death benefit accelerated because the benefits are paid prior to death. Values are based on a current interest rate and mortality rates. There is an initial administrative fee at the time the rider is exercised. The total payout over the lifetime of the insured is limited to: • Terminal illness, chronic illness, Alzheimer’s disease, or Lewy Body Dementia: $1,500,000. • Critical illness or critical injury: $1,000,000. We reserve the right to change these limits in the future. However, this limit will never be less than $500,000. Please refer to your policy for specific details about the riders.
Terminal Illness
Our Terminal Illness rider allows for the payment of a
portion of an insured’s death benefit, on a discounted basis,
if the insured has an illness or chronic condition that can reasonably be expected to result in death in 24 months or less. There is no additional premium for this rider.
Alzheimer's Disease and Lewy Body Dementia
This rider allows for payment of a portion of an insured's
death benefit, on a discounted basis, if the insured has
a qualifying diagnosis of Alzheimer’s disease or Lewy
Body Dementia. The rider will not be available if the
client has a first-degree relative (mother, father, or
siblings) with a history of Alzheimer's disease.
Chronic Illness
Our Chronic Illness and Covered Chronic Illness riders
allow for the payment of a portion of an insured’s death
benefit, on a discounted basis, if the insured is
Chronically Ill. A chronic illness is defined as one that
leaves you unable to perform, without substantial
assistance, two of the six normal activities of daily
living for a period of at least 90 days due to a loss
of functional capacity, or an illness that requires
substantial supervision to protect oneself from
threats to health and safety due to severe cognitive
impairment. The six activities of daily living include
bathing, continence, dressing, eating, toileting, and
transferring. There is no additional premium for
this rider.
This product is a life insurance policy with a rider that
accelerates the death benefit on account of chronic
illness and is not a health insurance policy providing
long-term care insurance subject to the minimum
requirements of New York Law, does not qualify for
the New York State Long-Term Care Partnership
program and is not a Medicare supplement policy.
Critical Illness and Critical Injury
Our Critical Illness and Critical Injury Riders allow for
the payment of a portion of an insured’s death benefit,
on a discounted basis, if the insured is Critically Ill or
Critically Injured.
Covered critical illnesses:
• Diagnosis of ALS (Lou
Gehrig’s Disease)
• Aorta Graft Surgery*
• Aplastic Anemia*
• Blindness**
• Cancer***
• Cystic Fibrosis*
• End-Stage Renal Failure
• Heart Attack
• Heart Valve Replacement*
• Major Organ Transplant
• Motor Neuron Disease*
• Stroke
• Sudden Cardiac Arrest*
Covered Critical Injuries:
• Coma*
• Paralysis*
• Severe Burns*
• Traumatic Brain Injury*
In California, your policy can only include the Critical
Illness, Critical Injury, and Alzheimer’s Disease riders if
you have health insurance coverage. Critical Injury and
Critical Illness rider availability is limited to issue ages 0-64.
Covered critical illnesses and covered critical injuries
may vary by state. Please refer to your policy for specific
details about these riders. There is no additional
premium for this rider.
Accelerated Benefits Riders (ABRs) vs.
Long-Term Care (LTC) Insurance
Accelerated Benefits Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Receipt of benefits may reduce or eliminate the availability of other policy riders and benefits. Benefits available are calculated at time of claim based on the age of the policy and our expectation of your future mortality. The amount of Accelerated Benefit available will depend on your life policy’s death benefit value when ABR benefits are claimed. For policies in good standing, if ABR benefits are not used, policy death benefits and other rider benefits are still available. California requires advertising for ABRs to provide a comparison to the benefits provided by Long-Term Care Insurance. However, Accelerated Benefits provided by the ABR riders are not Long-Term Care Insurance, and are not intended to be the same as, or an alternative to, Long-Term Care Insurance.
Long-Term Care (LTC) Insurance is not life insurance, and as such, has no death benefit or cash value. Long- Term Care Insurance benefits are specified at the time of the contract. LTC benefits are paid as a form of expense reimbursement for qualified Long-Term Care expenses. By comparison, for ABR benefits there is no restriction placed on the use of the accelerated benefits, they are paid once qualifications are met, and do not require you to provide receipt of specific expenses to qualify for the benefit. LTC premiums vary based on the level and length of benefit chosen by the policyholder. Premiums are paid on a recurring basis, and failure to pay premiums will generally lapse the policy. If LTC benefits are not claimed, they are typically forfeited. Long-Term Care Insurance policies may offer non-forfeiture benefits for additional premium. This is a life insurance benefit that also gives you the option to accelerate some or all of the death benefit in the event that you meet the criteria for a qualifying event described in the policy. This policy or certificate does not provide Long-Term Care Insurance subject to California Long-Term Care Insurance law. This policy or certificate is not a California Partnership for Long-Term Care Program policy. This policy or certificate is not a Medicare supplement (policy or certificate).
Life Insurance with
Upside Potential and Downside Protection
Important Terms to Know
Accumulated Value
A portion of your premium payments that can grow
tax-deferred over time and may be used throughout
your lifetime.
​
Basic Strategy
A fixed interest crediting account where any unallocated
premium is held until it is moved into your chosen
index crediting strategies on the 14th of every month.
​
Cap
The maximum interest or upper limit that may be
credited. A Cap of 10% means that 10% is the most the
chosen index crediting strategy will be credited.
​
Cash Value
The part of your Accumulated Value that can be
accessed for policy loans and withdrawals.
Death Benefit
Money beneficiaries receive upon the death of the insured.
​
Floor
The minimum interest or bottom limit that may be
credited. Most crediting options provide a 0% floor.
A 1% Floor Strategy is also available
​
Fixed-Term Strategy
Earns a specific rate of interest declared by the
company that is credited on a daily basis and
guaranteed for one year.
​
Interest Bonus*
An interest bonus will be credited beginning in year 6.
​
Interest Crediting Strategy
Strategies you choose for the excess premium.
Important Terms to Know
Indexed Strategies
Interest crediting may be tied to performance of
a market index.
​
Participation Rate
The maximum percentage that an index account
shares in the positive changes of the chosen index.
​
Policy Expenses
The cost of insurance and administering the policy,
taken out of the policy’s Accumulated Value every month.
​
Premiums
The regular payments you make on your policy.
S&P 500® Index
​The S&P 500® is widely regarded as the best single
gauge of the U.S. equities market. This world-renowned
index includes a representative sample of 500 leading
companies in leading industries of the U.S. economy.
​
Although the S&P 500® focuses on the large-cap
segment of the market, it is also an ideal proxy for
the total market.
Balanced Trend Index
The Balanced Trend Index, provided by UBS, is a
volatility-controlled index crediting strategy with
returns based on an index of a global multi-asset
investment universe comprised of equities, bonds,
real estate, commodities, and cash.
​
US Pacesetter Index
The US Pacesetter Index, provided by Société Générale,
is a U.S.-focused volatility targeted index. It seeks to
provide less volatility than the highs and lows of the
general market through a mix of different asset classes
that cover exposure to U.S. equities, U.S. government
debt, and commodities within the agriculture, metals,
and energy sectors.
What is a market index?
While an investment cannot be made directly into a market index, it is used to track the performance of a group of stocks or other investments
over time to give an indication of the overall performance of the market.
​
An investment cannot be made directly into an index.
​
*The interest bonus is referred to as the Annual Accumulated Value Enhancement (AAVE) rider in your contract.
Upside Potential
Based on the positive growth of a
market index.
Downside Protection
Guaranteed 0% or 1% interest crediting
floors in the event of a decline in the index.
How Interest Crediting Works
If the index goes up, you may earn interest, but if the index goes down, the values of your
interest crediting strategies are protected from loss due to the market decline.12 Indexed
interest accounts calculate interest using a participation rate or a cap.