FLEXLIFE II

U.P.E.C. offers a special whole life insurance policy called the Flexlife II Plan, whose basic insurance premiums may, at the option of the insured, discontinue after the cash accumulation, is substantial enough to pay for the premiums (no less than 7 years). The plan has both a smoker and a non-smoker rate. In order to qualify for the non-smoker discount, the applicant must not have smoked cigarettes within the last 12 months. The use of pipes, cigars, and smokeless tobacco qualify for non-smoker rates.

Most whole life (cash value) policies are permanently fixed with regard to their cost and the rate of interest they can credit. A whole life contract issued in 1950 was based on risk and economic information available at that time and, even though thirty years later much has changed for the better with regard to mortality experience and investment yields, none of these improvements have been reflected in that whole life policy purchased in 1950. The result is that, in many ways, that policy is obsolete. Even today, almost all life policies being developed and sold are using statistical studies from 30 years ago and only a 4 or 5 percent interest rate.

With the U.P.E.C. Flexlife II, the premiums and cash accumulation rates are based on the most recent risk information and on prevailing economic factors. The current cash accumulation rate and premiums are based on the most current risk studies available. The result is a plan with far lower premiums and more generous cash accumulation than any traditional whole life plan. Moreover, the policy is constructed so that whenever the Society benefits from higher investment yields, those advantages can be passed along to members.

Based on the age at the time the policy is issued, and the plan's current interest rate, premiums would be paid on this policy for a certain number of years. On any policy anniversary when the Actual Cash Surrender Value is in excess of the Guaranteed Cash Value, may use all or part of that excess to pay the premium. If you elect to pay premiums on a continuous basis, the result would be a much faster growth of the Cash Accumulation Account.

The cash accumulation rate is guaranteed to never be lower than 4%. Both the premiums and death benefit are guaranteed for the life of the contract. In the event it becomes possible to reduce the cost per $1,000 of coverage, the policyholder would enjoy a higher death benefit. But in no event could the rate per $1,000 ever exceed the Basic Premium applicable when the policy was issued.

This guarantee gives you assurance that, regardless of changes that might take place in the future, the Flexlife II policy will always offer a cost/benefit ratio comparable with the traditional whole life contracts sold today by the nation's major insurance companies. The projections allow you to benefit from the favorable risk and economic experience of the Supreme Council of U.P.E.C..

If higher-yielding investments become available to the Society, a higher rate of interest can be credited on the policy which would result in even faster appreciation of the Cash Accumulation Account. In the event inflation slows, resulting in lower investment yields available to the Society, the cash accumulation rate could be adjusted accordingly which would affect the cash accumulation values.

Remember, though, any adjustment in the policy would be dictated by current conditions and the policy remains as competitive in those circumstances as on the day it was purchased.

All life policies have figured into their premiums a cost for lapsation. Generally, this cost is applied equally to everyone, which means the policyholders who keep their coverage in force are paying extra because some people are surrendering their policies. There are no lapse costs built into the premium of Flexlife II and that helps keep the cost low. Instead, there is a charge applied to the Cash Accumulation Account. If the policy is not renewed, a deduction is made in those funds returned to the policyholder (this net amount is the policy's Cash Surrender Value). The charge works much like the early withdrawal charge on a time deposit, only the person who backs out is penalized. The cost of surrendering the policy stops at the end of a 15 year period after which it vanishes.

Policy loans are available just as with any whole life policy.