Flagship Whole Life Insurance
Permanent life insurance that builds tax-deferred cash value
Flagship Whole Life is a participating whole life plan, which combines the protection of an immediate guaranteed death benefit and cash value accumulation over time, the predictability of a fixed level-premium, and flexible funding options to ramp-up growth at the owner’s discretion. The owner can lock-in a fixed premium cost based on the age of the insured for up to $1,500,000 of permanent life insurance coverage with Flagship Whole Life.
Unlike term life insurance, which only provides protection for a temporary period of time, whole life insurance is guaranteed to provide financial protection for the insured’s entire lifetime as long as premiums are paid when due. The Flagship Whole Life plan can include Chronic and Terminal Illness settlement options at no additional cost. The plan’s tax-deferred cash value can generate dividends which may be utilized in different ways according to the owner’s changing needs over time. In addition, any outstanding policy loans can still earn dividends, so any loan balance doesn’t impact the growth rate potential of your death benefit.
- Guaranteed lifetime coverage – You and your loved ones are protected for life as long as premiums are paid on time
- Affordable level premiums – You pay a set premium and can choose a funding duration that fits your budget
- Paid-Up Additions Rider – Increase the guaranteed death benefit and cash value of the policy without any medical underwriting as long as the rider is active
Flagship Whole Life is ideal for individuals up to age 80, who want the predictability of a guaranteed minimum death benefit with the flexibility of a tax-advantaged financial asset.
Guaranteed Issue Flagship Whole Life
Flagship Whole Life typically requires medical underwriting, however, for servicemembers who are within 120 days of separation and who were covered by SGLI while in the service, we offer up to $400,000 of Guaranteed Issue Flagship Whole Life coverage – meaning that you do not need to undergo a medical exam to obtain coverage. A servicemember’s spouse and/or children may also be eligible for Guaranteed Issue coverage provided that Family SGLI was in place prior to the military member’s separation.
Additional Member Benefits
Chronic/Terminal Illness Option
The Flagship Whole Life plan features a two-part accelerated death benefit – at no additional cost:
- Chronic Illness Option: If the insured is age 60 or older and develops a need for assistance with two or more Activities of Daily Living or supervision due to cognitive impairment, the plan’s death benefit can be paid out over 48 or 60 months. This can help offset any costs associated with a chronic illness situation*, including long-term care.
- Terminal Illness Option: If the insured is diagnosed with a terminal illness resulting in a remaining life expectancy of 24 months or less, a one-time lump-sum payment of up to 100% of the benefit can be paid.
*A chronic illness is one that causes an individual to require assistance with at least two activities of daily living (bathing, dressing, eating, transferring from a bed to a chair, continence, or toileting) or a significant cognitive impairment lasting for at least 90 days. To receive tax-free payments under the Chronic Illness Option settlement, the condition must be expected to be permanent and must be reverified annually.
The Terminal Illness Option is available to an insured who has been covered by the Flagship Whole Life plan for five or more years.
Paid-Up Additions Rider
This included feature can be used to increase your policy’s total death benefit and cash value by up to a total lifetime maximum of $500,000 for all combined policies. Purchased at guaranteed rates, the rider premium may earn dividends and can be surrendered at any point without impacting your base coverage.
Accumulated cash value can generate an annual dividend used by the owner to match their current income needs and/or estate maximization strategy.
- Purchase Paid-Up Additions
- Have the dividend income distributed as a cash payment (often tax-free)
- Offset any ongoing premium funding requirements
- Repay policy loans and/or interest
- Purchase one-year term life insurance death benefit supplement
For just a little more each month, a member can add an initial policy for a child and/or grandchild up to their 26th birthday. This coverage provides:
- The lowest locked-in premium based on the youngest issue age possible
- The advantage of tax-deferred cash value compounding over many years
- A lifetime of potential growth, which may be a valuable asset to estate planning
- The security of permanent life insurance protection
- Access to purchase additional Navy Mutual products for the rest of their lifetime
Cash Value Policy Loans
You can borrow up to 75% of your policy’s available cash value at a variable loan interest rate. Any borrowed cash value and accumulating interest continues to be eligible for dividends. Any outstanding loan amount and accrued interest are subtracted from the death benefit at settlement or from the policy’s cash value upon surrender during the insured’s lifetime.
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