When you make your premium payment into Permanent Plus, it is deposited in your cash-value account. Every month, three separate transactions take place involving the cash-value accounts:
1. The account is charged for the cost of insurance for the next month.
First we pay for the cost of your life insurance, which is the mortality cost for each plan, plus that plan’s share of the association's administrative expenses. The mortality cost changes monthly, depending on the current accumulated cash value, death benefit, and the issue age/current age of the insured.
2. The rest of the individual's cash-value account earns interest, compounded monthly at Navy Mutual's full crediting rate, as long as there is no outstanding loan balance.
Shortly after the anniversary of the effective date of your Permanent Plus 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.
Remember: The cash value returned to the owner will never be less than the sum of premiums paid into the plan.
For more information on Navy Mutual Premium Plus life insurance, please call us at 800-628-6011.