Frequently Asked Questions
1. How can Stewardship Life Income premiums be so
much lower than traditional life insurance premiums?
- The following features of the Stewardship Life Income
contribute to its lower premiums: (1) The benefits of the
Stewardship Life Income are contingent upon the
beneficiary outliving the insures, (2) The Stewardship
Life Income has no cash value or other nonforfeiture
values, and, (3) The benefit is a guaranteed lifetime
monthly income.
2. If the beneficiary dies before the insured what
happens to the premiums that have been paid into the policy?
- Should the beneficiary predecease the insured, the
policy terminates and no benefits are paid unless the
return of Premium Rider was elected at the time of the
application, in which case all premiums are returned to
the insured over a comparable time period, frequency and
amount as the premium was paid (e.g., A Stewardship Life
Income policy containing a Return of Premium Rider had 34
monthly premiums of $125 each paid prior to the
beneficiary's death. The premiums would be returned
to the insured in 34 monthly payments of $125 each).
if the insured dies before all premium payments have been
returned, rider benefits cease.
3. Why isn't the premium amount guaranteed the same
as the monthly lifetime income benefit is guaranteed?
- In order to keep the premium amount at a low level the
premium is "indeterminate." This means
that Baltimore Life has the right to change premiums based
on changes in investment income; mortality; persistency;
and expenses. Any such change must be made on a
uniform basis for all contracts issued on this contract
form; issued to all insured of the same sex, age and
classification, and in force for the same length of
time. No change can occur on account of a change in
the insured's health or occupation. Baltimore Life
used reasonable current experience assumptions in
developing the current premiums for the Stewardship Life
Income. If the company's future experience remains consistent
with these assumptions, the premium will not change.
should future experience be more or less favorable than
the assumptions used in developing the current premium
schedule, premiums could be reduced or increased. If the
premiums were guaranteed, they would need to be higher in
order to protect against unforeseen future
contingencies.
4. Why can't the beneficiary be changed?
- Premiums for the Stewardship Life Income are based upon
underwriting considerations for both the insured and the
beneficiary at the time of issue. The mortality
assumptions for both the insured and the beneficiary are
critical to producing the premium cost efficiency of the Stewardship
Life Income. Any change in beneficiary would
required that a new policy be issued, involving new
underwriting and a new premium calculation.
5. Why is the Stewardship Life Income usually a
better solution to the need for a guaranteed lifetime income
than Term Life Insurance?
- The Stewardship Life Income provides pa permanent
solution to a permanent need. Term Insurance is
temporary. A term insured must either die within the
term coverage period, or risk maintaining insurability,
with the likelihood that the term premiums will
increase. This is an especially risky option as in
insured ages and term premiums increase significantly.
Source: The Baltimore Life Companies sales materials provided for use by
Independent Insurance Sales & Brokerage, Inc.
Your Survivor's Future
A Quick Look
Pay Less for Life Insurance?
Prospecting Letter
Proposal Form
Unique Life Insurance
Stewardship Life Income
How it Works
Personal Uses
Business & Estate Planning
Important Considerations
FAQ
|
|
