The FutureSystem™ Life Model - a New Actuarial Design
The FutureSystem™ Life Model (FSLM) represents an evolutionary paradigm shift in life insurance development and design, and has an entire set of planning strategies to go with it. Solutions that did not previously exist are now readily available.
The FutureSystem™ Life Model is literally a new form of life insurance. It is not variable universal life, fixed premium variable life, single premium variable life, whole life, term, paid up insurance, or any other traditional policy, but truly a new and unique policy model. While traditional insurance products strive to solve problems that are caused by their very structure, the FutureSystem™ Life Model was designed from the ground up to solve or eliminate those problems.
Two most significant industry issues are solved by the FSLM model:
- The life insurance explosion problem. FSLM products are the only variable life policies on the market that cannot lapse for any reason including non-payment of premiums or investment performance without incurring the extreme cost and contract limitations of “no lapse (secondary) guarantee charges”.
- The annuity’s death tax problem. The FSLM is a hybrid product, actuarially closer in design, functionality and pricing to an annuity than to a life policy while retaining the tremendous tax free advantage of life insurance at death. FSLM products are designed for the tax efficient growth like an annuity by using a patent pending actuarial model to minimize the “At Risk” insurance amount, reducing the resulting COI charges (insurance cost) to remarkably low levels.
Other Advantages:
- utilized in a way not thought of before of IRC Section 7702 of the tax law that defines life insurance
- uses a patent pending design to have the least amount of “at risk” death benefit to qualify as tax free life insurance.
- actuarially impossible for a life insurance product to be more efficient and have less drag from the cost of insurance at all points in time
- priced like an asset based investment account for both the insurance company and financial advisor.
- no upfront premium charges for either the carrier or the advisor
- no surrender charges (account value is accessible anytime without policy charges)
- full disclosure
- transparent charges
- no hidden fees
- unbundles and componentizes the actuarial elements allowing custom design and policy management rather than buying pre-packaged policies. Premium, cash value, and death benefit work “independently”, not “interdependently”.
- contract language that protects the client
- eliminates many of the negatives and potential problems of conventional life insurance
- simple design that eliminates fine print policy traps or “hidden gotcha clauses"
- simple to understand
- easy to implement
- no computer illustrations
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The best way for the advisor to learn and teach clients about the FutureSystem™ Planning Strategies and Life Model Product is to see and use the presentations in the Advisor Portal.
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