Centennial

Centennial UL Provides Guaranteed, Flexible Protection

With its extraordinary package of features and benefits, Beneficial’s new Centennial universal life is unlike most other universal life products. Named in honor of Beneficial Financial Group’s Centennial in 2005, this new UL product combines the security you need today with the flexibility you want in the future. Centennial UL can protect you for as long as you live, regardless of current and future economic conditions. It can be adapted to a variety of needs and situations, while building exceptional cash value for living needs.

Centennial guarantee not dependent on cash value
Most universal life policies guarantee to pay a death benefit if the policy is active at the time the insured dies. But the same contracts don’t guarantee that the policy will be active at the time of the insured’s death. In fact, most UL policies lapse (the life insurance protection ceases) when the cash value decreases to zero.

Beneficial’s Centennial UL is different: It can guarantee protection until the insured’s death whether or not there is cash value. Centennial’s life insurance guarantee is not dependent upon the existence of cash value, the performance of the stock market, the interest rate credited to the policy, or changes in policy expenses. The life insurance benefit is simply guaranteed by the payment of a specified premium.

With Centennial UL, the regular payment of premiums can result in greater policy cash values compared to other no-lapse guarantee UL policies, which typically do not build cash values to any significant degree. Most UL policies that build substantial cash values do not have a no-lapse guarantee.

Centennial’s guarantee is also different in that it is available on both death benefit options—level and increasing. Practically no other universal life product offers such a guarantee on both death benefit options.

Centennial UL also features a unique provision that allows a one-time transfer of cash value to increase the policy’s no-lapse value. This benefit can be used as a catch-up opportunity to extend the guaranteed protection period, without having to pay additional premium.

Flexible lifetime options and features
In addition to the death benefit, policyowners can take advantage of the following Centennial UL policy features during their lifetime:

1. Increased no-lapse value. Centennial UL policyowners have an option unlike any other universal life insurance product. As early as age 75, policyowners can use the accumulated cash value to enhance and extend the no-lapse guarantee and potentially reduce or stop paying premiums. This benefit is included in all Centennial UL policies at no additional cost.
   


2. Cash withdrawals. The policyowner may withdraw cash from the policy at any time. Cash withdrawals from other companies’ universal life policies usually result in a reduction of the policy insurance benefit. With the Option A death benefit, the owner may withdraw cash from the Centennial UL policy’s cash value without reducing the life insurance benefit if the withdrawal does not exceed 10 percent of the cash value or $15,000, whichever is less. Beneficial gives policyowners access to the cash values without sacrificing their life insurance protection.
   


3. Loans . The policyowner can borrow against the policy at favorable rates. Preferred loans—often referred to as “wash loans”—are available that allow policy owners to borrow against the gain in the policy at zero net cost: the interest rate credited on preferred loans is the same effective interest rate charged on the borrowed funds. With most UL products, there is a 2–4 percent difference between the interest rate charged on the borrowed funds and the interest rate credited to the cash value. That difference is not only a significant cost, but can adversely affect the performance and longevity of a policy with an outstanding loan.
   


4. Flexible premiums. Universal life policies permit the policyowner to increase, and sometimes decrease, premiums over the life of the policy. The policy allows for payment of additional premiums that can increase the growth of the cash value and/or the death benefit. If the policyowner doesn’t want to pay premiums until death, Beneficial can calculate a premium he or she may pay for a specified period of time that will result in guaranteed permanent life insurance protection. No life insurance product better accommodates changing financial pressures and economic conditions than universal life.
   


5. Competitive interest rates. The Centennial policy is interest-sensitive, so the cash value earns current market interest rates. The cash value is also protected by a guaranteed minimum crediting rate stated in the policy. Beneficial traditionally increases the credited interest rates of policies that have been active for 20 years or longer.
   


6. Tax-deferred growth. Under most circumstances, the cash value grows tax-free. Interest on the cash value compounds tax-deferred, producing a greater amount of money than if it were taxed every year.
   


7. Extended maturity. A policy that matures is subject to income taxes on the entire gain in the policy. Most UL policies have a maturity date. Universal life policies that do offer an extended maturity date usually require cash value in the policy when it matures to continue coverage, or they change the insurance benefit to be equal only to the policy’s cash value on its maturity date. Centennial UL policies never automatically mature.
   


8. New mortality table. Insurance costs for Centennial UL are based upon the latest industry mortality table that extends life expectancy to age 120. The benefit of this new table is passed on to policyowners in the form of lower premiums.
   


9. Adjustable coverage . The policyowner may increase (with proof of insurability) and decrease coverage.
   


10. Enhanced living benefits. Withdrawal and loan features are not the only living benefits provided by a Centennial UL policy. The following three benefits are included at no cost:
    
    
    
    • The Charitable Giving Benefit provides that Beneficial will pay up to 1 percent of the policy face amount ($10,000 maximum cash payment) to a qualified charity of the policyowner’s choice, in his or her name, without reducing the death benefit payable to the beneficiaries.
      
    
    
    • The Accelerated Benefit for Chronic Illness (ABCI) allows the policyowner to request and receive a discounted advance payment of part or all of the policy death benefit when the insured has a covered chronic illness. There are no restrictions on the use of funds.
      
    
    
    • The Accelerated Benefit for Terminal Illness allows the policyowner to request and receive up to 80 percent of the face amount of the policy (up to a maximum benefit of $200,000) in the event of terminal illness, as defined in the policy.
      
      
      

Centennial Universal Life form: 5-123-54. Accelerated Benefit for Chronic Illness form: ABCI-04-1 or ABCI-04-02. Accelerated Benefit for Terminal Illness form: B10. Charitable Giving Benefit form: E-CHARIT. Fixed life products are offered by Beneficial Life Insurance Company, 150 Social Hall Ave., P.O. Box 45654, Salt Lake City, Utah 84145-0654, (801) 933-1100. These products are not available in all states. Beneficial Financial Group is a marketing name for Beneficial Life Insurance Company, its affiliated companies, and sales representatives. The policy contains the actual governing contractual provisions. Guarantees are subject to the claims-paying ability of the insurer. Beneficial Financial Group and its respective agents, representatives, and/or advisors, do not offer tax or legal advice. Please consult your attorney, accountant, or tax advisor about specific points of interest to you.