What Is Futurity II?
Futurity II is a life insurance product offered by Delaware Life Insurance Company, designed as a flexible, level‑premium whole‑life policy that combines a death benefit with a cash‑value component. It is intended for individuals who want lifelong coverage, predictable premiums, and the ability to build tax‑deferred savings within the policy.
- What Is Futurity II?
- Key Features of Futurity II
- How the Cash Value Grows
- Eligibility and Underwriting
- Cost Structure and Premiums
- Optional Riders and Enhancements
- Comparing Futurity II to Other Whole‑Life Products
- Tax Implications
- When Might Futurity II Be the Right Choice?
- How to Purchase Futurity II
- Maintaining Your Policy
- Frequently Asked Questions
- Can I convert Futurity II to a different type of policy?
- What happens if I stop paying premiums?
- Is the death benefit taxable?
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Key Features of Futurity II
Futurity II blends traditional whole‑life insurance characteristics with optional riders that can tailor the policy to specific needs.
- Level premiums for the life of the policy
- Guaranteed death benefit
- Cash value that grows at a declared interest rate
- Policy‑loan and withdrawal options
- Optional riders (e.g., accelerated death benefit, waiver of premium)
How the Cash Value Grows
The cash value in a Futurity II policy accumulates based on a declared interest rate set by Delaware Life Insurance Co. This rate is typically competitive with other whole‑life products and is reviewed annually. Policyholders can access the cash value through loans or withdrawals, but any outstanding loan balance will reduce the death benefit.
Eligibility and Underwriting
Eligibility requirements are standard for whole‑life insurance:
- Applicants must be at least 18 years old (some states allow younger applicants with a parent/guardian).
- Medical underwriting includes a health questionnaire, possible lab work, and a review of medical records.
- Minimum face amount is usually $10,000; maximum limits depend on state regulations and underwriting results.
Cost Structure and Premiums
Premiums for Futurity II are calculated based on age, gender, health status, and the chosen face amount. Because the policy is level‑premium, the amount you pay at age 30 will be the same as at age 60, assuming the policy remains in force.
| Metric | Typical Range | Context |
|---|---|---|
| Annual Premium (for $100,000 face amount) | $800 – $1,500 | Varies by age 30‑60 and health rating |
| Declared Cash‑Value Interest Rate | 2.0% – 4.5% | Set annually by the insurer, subject to change |
| Policy Loan Interest Rate | 5% – 8% | Applied to outstanding loan balances |
Optional Riders and Enhancements
Riders can be added at purchase or later, often for an additional premium.
- Accelerated Death Benefit Rider: Allows access to a portion of the death benefit if diagnosed with a terminal illness.
- Waiver of Premium Rider: Waives future premiums if the insured becomes disabled.
- Guaranteed Insurability Rider: Permits the purchase of additional coverage at specified ages without further medical underwriting.
Comparing Futurity II to Other Whole‑Life Products
When evaluating Futurity II, consider how it stacks up against similar offerings from major insurers.
| Attribute | Futurity II | Typical Competitor Whole‑Life | Source Type |
|---|---|---|---|
| Level Premiums | Yes | Yes | Policy Docs |
| Cash‑Value Interest Rate | 2.0%‑4.5% (declared) | 3.0%‑5.0% (often guaranteed) | Company Filings |
| Rider Flexibility | High (multiple riders) | Moderate | Product Brochure |
Tax Implications
The cash value grows tax‑deferred, and policy loans are generally not taxable as long as the policy remains in force. However, if the policy lapses with an outstanding loan, the borrowed amount may become taxable.
When Might Futurity II Be the Right Choice?
Futurity II is suited for:
- Individuals seeking lifelong coverage without premium increases.
- Those who want a forced‑savings component that can serve as an emergency fund.
- People who value the ability to add riders for future health or disability concerns.
How to Purchase Futurity II
Follow these steps to obtain a Futurity II policy:
Maintaining Your Policy
To keep Futurity II active:
- Pay premiums on time; most policies offer a grace period of 30 days.
- Monitor cash‑value growth and loan balances annually.
- Review rider needs periodically, especially after major life events.
Frequently Asked Questions
Can I convert Futurity II to a different type of policy?
Most whole‑life policies, including Futurity II, allow a conversion to a universal life or variable universal life product, subject to the insurer's conversion provisions.
What happens if I stop paying premiums?
If premiums lapse, the policy may enter a non‑forfeiture status, using the cash value to keep the coverage in force (reduced paid‑up) or to purchase term coverage for a limited period.
Is the death benefit taxable?
Generally, the death benefit paid to beneficiaries is income‑tax free. However, if the policy has a cash‑value loan that exceeds the death benefit, the excess may be taxable.