Permanent Whole Life Insurance in action.

One of my client passed away on 29 Sept 2006. He was 56. As I was helping his beneficiary to claim the death benefits, i found the information professionally educational.

This client purchased a permanent whole life policy in 1985 when he was 35. The premium was guaranteed to be S$2781 per year for a guaranteed assured sum of $100,000. The policy was arranged to be a Section 73 policy. When he passed away at age 56, the policy was inforced for 21 years. The accumulated reversionary bonus since 1985 till today is $73,584. The total premium he had paid was $58,401. The total sum his beneficiary received is $100,000 + $73,584 = $173,584. When i less off the $58,401 total premium paid, this permanent life policy effectively CREATED $115,183 for the widow of my client.

At the time of death, the client had substantial assets in properties, unit trusts, stocks, and fixed deposit. These assets are now frozen pending the grant of probate. The lawyer adviced that the estimated time to extract the grant of probate to be 1 to 2 years. As the policy was arranged as a section 73 policy. The proceed can be paid out without the grant of probate. Within a week, the widow got the cheque of $173,584, which was badly needed for the family.

This is permanent whole life insurance policy in action.