What Is Single Premium Life (SPL)?
Single Premium Life (SPL) is a one‑time‑payment life insurance product that provides long‑term benefits, immediate policy value, and flexible planning options for clients who want to protect and transfer wealth efficiently. Instead of paying ongoing premiums, the policyholder makes one lump‑sum payment, after which the policy remains in force for life.
IAMS (Insurance Agency Marketing Services, Inc.) offers a full suite of SPL products and equips producers with tools, comparison sheets, and training materials to confidently present and promote SPL solutions to clients. [iamsinc.com]
How SPL Works
With Single Premium Life insurance, a client contributes one upfront premium, which immediately funds the entire life insurance contract. Because the policy is fully paid at issue:
- The death benefit is typically larger than the initial premium, allowing efficient wealth transfer.
- The policy builds cash value, which can grow tax‑deferred.
- Funds can often be accessed through loans or withdrawals (depending on product design).
- The product avoids the long‑term payment commitments required by traditional life insurance.
This makes SPL appealing for clients with liquid assets who want to quickly convert those assets into a tax‑advantaged, legacy‑focused insurance solution. [iamsinc.com]
Types of SPL Products Offered Through IAMS
IAMS provides access to multiple SPL structures designed for various planning needs. The product categories include:
- Indexed Single Premium Life
- Fixed Indexed SPL
- Whole Single Premium Life
These SPL variations allow producers to match the right product to a client’s financial goals, risk tolerance, and legacy planning needs. [iamsinc.com]
Benefits of SPL
SPL products offer a range of long‑term advantages for policyholders, including:
1. Immediate and Significant Death Benefit
Because the policy is funded with one large premium, SPL policies often deliver a leveraged death benefit amount that exceeds the premium contributed. [iamsinc.com]
2. Tax‑Advantaged Cash Value Growth
Depending on product type, policy values may grow tax‑deferred, supporting long‑term wealth accumulation strategies.
3. Liquidity Options
Many SPL products offer access to cash values through withdrawals or loans, giving clients flexibility if their financial needs change.
4. No Ongoing Premium Commitment
The single‑payment structure eliminates the risk of lapses due to missed premiums, making SPL a reliable and simplified planning tool.
Support IAMS Provides for SPL Sales
IAMS equips agents with a range of tools and resources to help them present SPL solutions effectively:
- Product information and comparison sheets to evaluate SPL options side‑by‑side.
- Marketing and promotional materials specific to SPL.
- Training sessions and webinars that help agents position SPL in wealth transfer, tax planning, and retirement strategies.
- Experienced case design assistance to help structure policies accurately and competitively.
[iamsinc.com]
IAMS emphasizes SPL as a high‑value product category and provides education so producers can confidently communicate its benefits to clients. [iamsinc.com]
Ideal Clients for SPL
SPL is often a strong fit for clients who:
- Have accumulated savings they wish to reposition for better leverage
- Seek an efficient wealth‑transfer tool
- Want permanent coverage funded by a single premium
- Prefer predictable, simplified insurance ownership
- Desire tax‑advantaged accumulation options
Conclusion
Single Premium Life (SPL) is a powerful one‑time‑payment life insurance solution that offers long‑term benefits, including leveraged death benefits, cash value growth, and planning flexibility. IAMS supports SPL sales with comparison tools, product expertise, and ongoing training, making it easier for producers to integrate SPL into client strategies.