Graded Premium Whole Life

Many insurance companies call their most competitive term policies Graded Premium Whole Life (GPWL). These policies have characteristics of YRT and Cash Value life insurance. These policies usually resemble a YRT since they have very low premiums in the early years. They resemble cash value life insurance because they eventually build up cash values (usually after a very long time period like 20 years). Our consultants refer to these types of policies as a YRT even though they are technically not YRT policies. It should be noted that while these types of policies are often quite attractive, after about three or four years, the insured should be considering replacement.

Re-entry Premiums
Preferred Underwriting
Universal Life and Universal Variable Life (more detail)
Retaining Tax Benefits of Life Insurance
Problems with Underfunding a Universal Life Contract
Net Interest/Net Rate of Return

This document was last modified on July 26, 1999

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