Issue Ages: 0 to 85 (Age Closest Birthday Method)
Minimum Face Amount at Issue
• Issue age 0 to 17 = $25,000
• Issue age 18 to 85 = $15,000
• GCU Irrevocable Life Insurance Burial Trust – Issue age 50 to 85 = $7,500
As a Fraternal Benefit Society, GCU’s mission is to provide the maximum possible benefit to its members, while maintaining the financial security of the organization. As a result, you will typically see greater coverage per premium dollar, and in the case of the Single Premium Whole Life Contract, even greater guaranteed cash values and a quicker return to those values equaling and then exceeding the deposit premium.
Marketing the GCU SPWL
1. This can be a great contract to be written on younger children. Parents, grandparents, aunts and uncles have used our SPWL to bring their son or daughter, grandson or granddaughter, niece or nephew into the GCU as a new member. Having an SPWL policy for at least 5 years would be one of the requirements for that young person to participate in our GCU National Scholarship Program as well as our GCU Academic Performance Scholarship Program. It is a great way to start a young person’s financial planning for their young adult/adult life. Maximum face amount on a minor is $50,000, without prior Home Office Underwriting approval.
2. The SPWL contract can also be used with older clients who are looking to do Wealth Transfer Planning. The KEY issue is this, however: The SPWL contract should NEVER be sold as a short term investment. As a modified endowment contract, there are tax issues involved that the client must understand. Simply put, the GCU SPWL should ALWAYS be sold as a LIFE INSURANCE CONTRACT. That said, a client has the benefit of one of the best cost for coverage ratios, and the security of a MUCH quicker return of the guaranteed cash surrender value to the deposit amount, should an emergency arise “down the road”.
3. Final Expense Planning. The GCU SPWL, like all of their Whole Life Programs, is a fully underwritten contract. However, GCU only underwrites based on the “Net Amount at Risk”. Therefore, a $5,000 premium that generates an initial death benefit of $10,000, would be underwritten based on the $5,000 net amount at risk, dramatically reducing the underwriting criteria. Compared to other “guaranteed acceptance” or “graded death benefit” programs, your client is more likely to have both a simplified approach to the underwriting process AND less cost to generate the same initial death benefit.
4. Final Expense Planning WITH the GCU Irrevocable Life Insurance Burial Trust (IBT). The same process as Final Expense Planning, only now, the contract is part of the IBT, with a named or unnamed funeral service provider as the primary beneficiary of the proceeds to the extent of goods and services incurred at the funeral. By using the (IBT), this contract would essentially “bypass” the look-back period if the insured found themselves in need to do a “Spend down” to qualify for government assistance. Policy performance is identical to NOT using the IBT, but by using the IBT, you have given your client an added layer of protection vs the typical final expense plan that is owned by the insured.
The MAXIMUM premium deposit on a GCU SPWL is $150,000 per insured, per calendar year. Amounts in excess of this must receive prior approval from the GCU Home Office. However, you should be aware that GCU has consistently written cases with premiums higher and MUCH higher than $150,000. Typically, this will involve the engagement of their reinsurer, but GCU controls all aspects of working with you and your client to obtain and perform the necessary underwriting requirements.
(Terms of Service and sale are subject to change)