New York Life ECSV Rider Approved in CA
As strong as early cash values are in a typical whole life policy are, there is still a significant gap between premiums paid and surrender values that can present a challenge for clients seeking more competitive liquidity. The newly launched Enhanced Cash Surrender Value Rider, available on New York Life’s Custom Whole Life, can bridge that gap and is designed specifically for use in premium finance cases.
From NY Life:
The ECSV Rider provides an ECSV Benefit. The ECSV Benefit is available only during the ECSV Period, which is the first five policy years. When the ECSV Rider is active on the policy, the policyowner will be paid ECSV Benefit upon full surrender instead of the Total Cash Value (as defined in the policy). Upon full surrender, the ECSV Benefit provides an amount equal to the greater of 1) and 2), where:
Is equal to the ECSV Percentage multiplied by the cumulative premiums paid into the base policy and Dividend Option Term (DOT), if applicable, less any outstanding loans and accrued loan interest; and
Is the Cash Surrender Value which is equal to the Total Cash Value (as defined in the policy) less any outstanding policy loans and accrued loan interest. The ECSV Percentage used to determine the ECSV Benefit is 85%. The ECSV Percentage is guaranteed during the ECSV Period.
In order to be eligible to receive the ECSV Benefit, the following conditions must be satisfied:
The Base Policy must be in effect and not be in a Late Period
The Paid-Up Additional Insurance Dividend Option under the Base Policy must be in effect
The Base Policy Premium Payment Mode must not have been changed during the ECSV Period; and
The Paid-Up Additional Insurance under the Base Policy must not have been surrendered during the ECSV Period.
Important: All cases involving the ECSV will require New York Life Home Office approval. Please reach out to AIN or your New York Life Corporate Vice President for additional details.