| Guaranteed at-death proceeds; Guaranteed lifetime benefits |
One-time payment of all premiums due for life of the policy |
Builds up faster than any other type of policy since policy is fully
funded with payment of the sole premium |
Most highly investment-weighted policy; Earnings left in policy until
insurer's death escape income tax |
Classified as a MEC: lifetime withdrawals and loans subject to income
tax and may be subject to 10% penalty tax; One-time payment of premiums
may be cost prohibitive |
Buyers needing insurance coverage but who want policy weighted to
investments (only feasible if lifetime withdrawal will not be made); A
preferred way for high-income owners to transfer income estate tax free |