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Permanent Life Insurance - Lifetime of Coverage, and Build Cash Value

Military Permanent Life Insurance for a Family

Permanent Plus^TM is an interest sensitive whole life insurance plan which combines the protection of permanent life insurance with the cash value growth of universal life type insurance. It is a life insurance plan which maintains a guaranteed level premium, a death benefit which can increase over time and tax-deferred cash value growth. Permanent Plus^TM provides life insurance for your entire life while giving a couple of options for an early payout of the death benefit for purposes of long term care or terminal illness. See below for more details.

Coverage Requirement

Permanent Plus^TM is sold in $10,000 increments with a minimum required amount of $20,000. Service members and their spouses can each purchase and maintain up to $1,000,000 of total initial death benefit with Navy Mutual. Children and grandchildren between the ages of 6 months and 24 years may have up to $250,000 of coverage.

Permanent Life Premiums

Premium rates are calculated on the insured's issue age, amount of coverage, elected premium payment duration, and nicotine use(i.e., nicotine user is an individual who has used any nicotine products within the past 12 months). Premiums are fixed and will not extend beyond the number of payment years elected. Payment durations ranging from a single payment to premiums being paid to age 100 can be elected to meet your budget. Premiums paid over a shorter period of time require larger monthly payments compared to premiums paid over a longer period of time. (See the premium tables on following pages). Plans which are paid up in a shorter period of time will generally realize greater cash value growth than a policy which is being paid over a longer period of time. To receive an immediate premium quote, please click here.

Tax-Deferred Savings

Permanent Plus^TM benefit plans provide a cash value to our military service and government members which can be viewed as a type of savings account. Premium payments are added to the cash value which accumulates tax-deferred interest on amounts in excess of the cost of insurance. Navy Mutual invests the premiums in very high quality, sound investments such as high grade corporate bonds, federal securities and federally backed mortgages. Navy Mutual compares most favorably to other insurers who have similar policies by providing a high crediting rate (interest rate paid on the cash value) and low costs of insurance which maximizes the growth of your cash value and death benefit. In addition, Permanent Plus^TM has no surrender fees, no commissions, and guarantees the return of 100% of your premiums!

Loans against Your Permanent Life Policy

Permanent Plus^TM benefit plan owners may elect to borrow up to 75% of the available cash value at any time. Loan interest will be billed to the owner each year 30 days prior to the plan's anniversary month. 1/2 of 1% will be deducted from the loan interest rate to pay for the cost of maintaining the loan while the remaining interest will be credited back to the cash value. For example: assuming a loan interest rate of 7.5% - the cash value will be credited with 7.0% while the remaining 0.5% goes to NMAA for the cost of administering the loan. The unborrowed cash value will continue to be credited with the current crediting rate. Any outstanding loan with accrued interest will be subtracted from the death benefit or cash value upon death or surrender, respectively. In the event that a premium payment is not received within 31 days after the premium due date, an Automatic Premium Loan (APL) will be established against the plan so that the policy will not lapse. If the total loan should ever exceed the cash value, the policy will lapse creating an immediate taxable event.

Guaranteed Insurability Option

An insured service member who is covered under a Permanent Plus^TM plan may purchase, without taking a physical, an additional $20,000 of Permanent Plus^TM within 90 days after turning age 25, 30, 35, 40, and 45 or upon marriage or the birth of a child. Up to a maximum of $80,000 of additional coverage may be elected under the guaranteed insurability option over the member's lifetime. There is no additional premium for this option!

Long Term Care Option

Any insured age 60 or older who has had the Permanent Plus^TM benefit plan in force for at least 2 years and who qualifies medically can elect to have the death benefit paid out over a period of 48 to 60 months to help defray any long term care expenses. There is no additional premium for this option!

Accelerated Death Benefit Option

Insured's who have maintained the plan for more than five years and are terminally ill may receive a majority of the death benefit as a lump sum. There is no additional premium for this option!

Plan Change Flexibility

Permanent Plus^TM policy owners have the flexibility of modifying their policy in the future to meet their changing needs. Below is an explanation of the various types of policy changes which may be available to you.

Discounted Single Premium:
A Discounted Single Premium (DSP) is a prepayment of all future premiums at a discount. The advantages of paying the policy off with a DSP is the increased growth potential of both the cash value and death benefit in addition to the fact that you will have paid fewer premiums into the policy over the long run. The disadvantage is that the policy may become classified as a Modified Endowment Contract if the policy is paid up within seven years from the policy effective date (see the Modified Endowment Contract (MEC) Considerations section for more details).

Reduced Paid-Up Benefit:
A Reduced Paid Up Benefit (RPU Minimum Projected) is the option of stopping all future premiums and reducing the death benefit Minimum Projected. Once this option is elected, no further premiums can ever be paid into the plan. This is a favorable option for those who are not able to pay anymore premiums and do not wish to lose all of their coverage.

Reduction of Coverage:
Death benefits may be reduced in unit increments to a minimum of $20,000. When the coverage is reduced, a refund of cash value may be given along with a reduction of the monthly premium.

Payment Duration Change
Premium payment durations may be changed to either a longer period with lower monthly premiums or a shorter period with larger monthly premiums. Extending your payment duration will reduce the amount of monthly premium but will require the insured to provide proof of insurability. Reducing your payment duration will require the owner to pay a higher premium for the remainder of the newly elected period.

All of the above plan change options require Navy Mutual Aid to provide special calculations. The policy change calculations and possible tax ramifications will be provided to the owner through correspondence. Policy changes will require a change of premium and a signed letter of authorization.

How Permanent 'Plus' Life Insurance Works

When your premium payment is received, it is deposited in your cash value account. Every month, three separate transactions take place involving the cash value account:

1. The account is charged for the cost of insurance for the next month.

Cost of insurance is the mortality cost for each plan plus that plans share of the Associations administrative expenses. Mortality cost changes monthly, depending on the current accumulated cash value and death benefit and on the issue age and attained age of the insured.

2. A portion of the cash value funds are transferred to the Members Equity Account.

The Member's Equity Account is the individual member's portion of the Association's Contingency Fund, which is in place to absorb short term fluctuations in investment return and mortality experience that might otherwise adversely affect the insurance reserves. The Member's Equity Account, less the unamortized cost of establishing the plan (if any), will be returned to the member as part of the cash surrender value or added to any death proceeds. The Member's Equity Account is not guaranteed and the account value may fluctuate from year to year based on the Association's operating experience.

3. The balance of the individual's cash value account earns interest compounded monthly at the Association's full Crediting Rate, assuming no outstanding loan balance.

Shortly after the anniversary of the effective date of your Permanent Plus^TM plan, you will receive an annual statement showing in detail each monthly transaction that took place during the year, including all charges, credits, transfers and changes in values and death benefits. When the cash value builds to an amount sufficient to meet higher insurance values, the death benefit increases without additional premium.

Cash value returned to the owner at surrender will never be less than the sum of premiums paid into the plan.

Simplified Permanent 'Plus' Illustrations

Below are two examples of a 30 year old non-tobacco user who is purchasing $40,000 of Permanent Plus^TM. The top illustration assumes that a payment plan of 7 years is elected while the bottom illustration assumes a payment plan of 20 years. Please refer to your own personalized projections to determine how your policy may perform.

			Pay For 7 Year Plan
			Guaranteed Minimum		Projected Amounts at 7.00%
	Annual	Cumulative	Cash	Death	Cash	Death
Age	Premium	Premiums	Value	Benefits	Value	Benefits
31	$1,044.00	$1,044	$1,044	$40,000	$1,044	$40,000
32	$1,044.00	$2,088	$2,088	$40,000	$2,088	$40,045
33	$1,044.00	$3,132	$3,132	$40,000	$3,151	$40,177
34	$1,044.00	$4,176	$4,176	$40,000	$4,439	$40,319
35	$1,044.00	$5,220	$5,220	$40,000	$5,814	$40,475
36	$1,044.00	$6,264	$6,264	$40,000	$7,280	$40,644
37	$1,044.00	$7,308	$7,308	$40,000	$8,844	$40,829
38	$0	$7,308	$7,308	$40,000	$9,398	$40,908
39	$0	$7,308	$7,308	$40,000	$9,986	$40,996
40	$0	$7,308	$7,308	$40,000	$10,613	$41,091
50	$0	$7,308	$10,636	$40,000	$19,437	$51,869
60	$0	$7,308	$15,925	$40,000	$35,044	$68,342
70	$0	$7,308	$22,292	$40,000	$61,431	$92,642
80	$0	$7,308	$28,414	$40,000	$104,893	$131,836
90	$0	$7,308	$33,047	$40,000	$175,401	$197,195
100	$0	$7,308	$40,000	$40,000	$304,662	$304,662

Average tax-deferred 10 Year Return On Cash Value = 5.22%
The above return assumes annual payments for 7 years, a projected crediting rate of 7.00%, and mortality & administrative charges.

			Pay For 20 Year Plan
			Guaranteed Minimum		Projected Amounts at 7.00%
	Annual	Cumulative	Cash	Death	Cash	Death
Age	Premium	Premiums	Value	Benefits	Value	Benefits
31	$412.80	$413	$413	$40,000	$413	$40,000
32	$412.80	$826	$826	$40,000	$826	$40,000
33	$412.80	$1,238	$1,238	$40,000	$1,238	$40,000
34	$412.80	$1,651	$1,651	$40,000	$1,651	$40,000
35	$412.80	$2,064	$2,064	$40,000	$2,064	$40,043
36	$412.80	$2,477	$2,477	$40,000	$2,480	$40,101
37	$412.80	$2,890	$2,890	$40,000	$3,042	$40,160
38	$412.80	$3,302	$3,302	$40,000	$3,640	$40,225
39	$412.80	$3,715	$3,715	$40,000	$4,276	$40,295
40	$412.80	$4,128	$4,128	$40,000	$4,952	$40,371
50	$412.80	$8,256	$10,636	$40,000	$14,565	$41,493
60	$0	$8,256	$15,925	$40,000	$26,109	$50,918
70	$0	$8,256	$22,292	$40,000	$45,577	$68,733
80	$0	$8,256	$28,414	$40,000	$77,533	$97,449
90	$0	$8,256	$33,047	$40,000	$129,166	$145,215
100	$0	$8,256	$40,000	$40,000	$223,430	$223,430

Average tax-deferred 10 Year Return On Cash Value = 3.28%
The above return assumes annual payments for 20 years, a projected crediting rate of 7.00%, and mortality and administrative charges.

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