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The Gap Protector (GPR) rider increases the face amount each year by the level increase amount until the rider has reached the Maximum GAP Protector Rider Face Amount or attained Age 70, whichever comes first. The level increase amount is the increase percentage selected applied to the lesser of the total face amount and $250,000. It is designed for younger insurance buyers who know they will need more coverage later and want to lock in its availability now. GPR is not available with Express Rate Classes.
GPR Rider Specifications:
Issue Ages: 20 – 50
GPR Options: 5%, 10%, 15%
Premium: Planned payments will increase with each face amount increase equal to the dollar amount of the target premium (CTP) increase.
Maximum GAP Protector Face Amount
Ages 20 – 29: 4x minimum $250,000 or face amount at issue
Ages 30 – 39: 3x minimum $250,000 or face amount at issue
Ages 40 – 50: 2x minimum $250,000 or face amount at issue
Example A:
Age 25
Base Face Amount = 150,000
Gap Protection Option = 15% (Annual GPR Increase 22,500)
Maximum Gap Protector Face Amount = 600,000 (4 x Base Face Amount)
Total Death Benefit at Age 52 = 750,000 (Base + GPR)
Example B:
Age 35
Base Face Amount = 50,000
Gap Protection Option = 5% (Annual GPR Increase 2,500)
Maximum Gap Protector Face Amount = 87,500 (Attained age 70 is reached before 3 x Base Face Amount Maximum of 150,000)
Total Death Benefit at Age 70 = 137,500 (Base + GPR)
Example C:
Age 45
Base Face Amount = 100,000
Additional Protection Benefit = 50,000
Total Face Amount = 150,000
Gap Protection Option = 10% (Annual GPR Increase 15,000)
Maximum Gap Protector Face Amount = 300,000 (2 x Total Face)
Total Death Benefit at Age 65 = 450,000 (Base + APB + GPR)