Universal Life Insurance is a Permanent Affordable Policy

Universal life insurance is a permanent, affordable policy that can help keep your premiums low over time and allows you to buildtax-sheltered wealth inside your company. Consider purchasing universal life insurance if you:

• need permanent insurance to solve a permanent problem
• need insurance for estate planning
• need insurance for your buy-see agreement
• have cash building up in your company that you’d like shelter from tax
• are tired of your term life insurance premiums always going up

Whatever stage of life you’re in including a universal life policy in your financial planning can help you protect your partners, your employees and your family.

UNDERSTANDING UNIVERSAL LIFE POLICIES

Universal life insurance is permanent life insurance. It’s designed to help you provide financial support to your beneficiaries. What makes universal life insurance unique is that it allows you to invest your money and build wealth over time - tax free. Universal life policies can be set up with level premiums to the age of 100 or you can plan to increase your premiums and have the policy paid up in 10, 20 or 30 years.

Most policies allow you to customize a coverage plan to suit your specific needs. You can choose the type of death benefit contained in the policy. A few common options are:

• Level face - The death benefit remains the same for as long as you own the insurance policy.  
  
• Face plus - The cash value is added to the death benefit and both are paid out on death.  
  

Generally, you can choose the insurance costs to be a level structure or yearly increasing structure.  

With the level payment structure, you can pay premiums all the way to age 100. Or the plan could be set up to pre-pay itself so you can stop premiums at some point in the future.  

With the yearly increasing payment structure, the insurance cost is very low in the early years which allows our cash values to grow faster.  

In some cases, you can switch between the two payment structures. This way, you can use the yearly increasing structure to build up early account values quickly before switching to the level structure to grow your investment over time. 

Universal life Insurance with Level premiums to age 100:  

A male non-smoker age 40, 750,000 dollars of coverage would cost 647.92 per month, with premiums level to age 100. 

A female non-smoker age 40, 750,000 dollars of coverage would cost 563.98 per month with premiums level to age 100. 

(these rates are correct on April 9, 2020) 

Ask your advisor about the payment options available to you and decide which one best suits your long-term goals.