Business Underwriters Associates, LLC

Lower Minimum Face Amounts Coming for MassMutual Whole Life 10-Pay and Whole Life 12-Pay

04-21-2023

MassMutual is pleased to announce they are lowering the minimum face amount for Whole Life 10-Pay and 12-Pay products to $25,000. This change will give financial professionals and clients more flexibility in their planning and also aligns with product minimums in the rest of their whole life product portfolio. Please note, this change excludes the High Early Cash Value (HECV) product which remains at $100,000.

A new face amount band will become available for face amounts between $25,000 and $99,999. Premiums and dividends for policies in this band will vary from higher bands.

The new minimum face amount will be available for policies with and without the LTCAccess Rider (LTCR), although for policies with LTCR, the minimum face amount will be $97,000 (like other non-HECV products). There are no changes for face amounts above the new low band

Risk classes

  • For face amounts of $25,000-$49,999, only Non-Tobacco and Tobacco risk classes will be available.
  • For face amounts of $50,000-$99,999, all risk classes will be available.

Key dates for this change

  • May 1: Illustrations will be available in WinFlex Web.
  • May 20: First day to submit applications through iGO and for policies to be issued.

Transition rules

  • Policies not yet issued when the change becomes effective will be allowed to reduce the face amount to as low as $25,000.
  • Policies eligible for 90-day reissue at the time the change becomes effective will be allowed to request reissue to reduce the face amount to as low as $25,000.
  • Whole Life 10-Pay and 12-Pay policies issued before May 20 will continue to have a minimum face amount of $100,000 for future face amount decreases unless they are reissued on or after May 20 with a face amount below the current minimum of $100,000.
  • See transition rules for complete details.

Limited pay policies can be ideal for children/grandchildren as they can be paid-up by the time the child reaches the age of majority (21 in most states).  With lower face amounts, MassMutual's Whole Life 10-Pay and Whole Life 12-Pay can be a great way to help your client's children achieve their dreams and realize their financial goals.

Please give us a call at 800.792.6795 if you have any questions.