Universal Life Insurance
What is Universal Life Insurance?
Universal Life Insurance is a life insurance policy that will last for the duration of your lifetime. In the event of your death, the policy death benefit will be payable to your loved ones. These Guaranteed No Lapse Universal Life Insurance policies provide a guaranteed level premium and death benefit that will not change, meaning the rates will never go up and the coverage will never go down or expire until age 121. Universal Life Insurance is permanent life insurance.
NO EXAM: People ages 18 to 65 can get up to $500,000 with Sagicor Life Insurance, a 160 year old A-Excellent rated company by AM Best.
Universal Life Insurance definition
Universal Life Insurance is the most economical permanent life insurance you can buy. Your premiums never increase and your life insurance coverage will never decrease. Universal Life Insurance is more affordable than whole life insurance and won’t expire like term insurance does.
Universal Life Insurance vs Term Insurance
Universal Life Insurance is life insurance coverage you keep your whole life, term insurance you keep for a term of years. Term life insurance provides more life insurance coverage for your money, but less than 5% of all term policies pay out because most people outlive their policy. Term insurance is considered temporary life insurance and 95% of all term insurance policies issued will never pay out. Universal life insurance is life insurance you own and keep your whole life, term life insurance you rent for a term of 10, 15, 20, or 30 years. If you have a need for permanent life insurance universal life insurance is best. People don’t outlive their Universal Life Insurance policies because Universal Life Insurance provides guaranteed permanent life insurance coverage to age 121.
Universal Life Insurance vs Whole Life Insurance
The biggest difference in universal life insurance and whole life insurance is the cost. Universal life insurance rates can be up to 50% less than whole life insurance rates. Universal life insurance is permanent life insurance with little to no cash value which let’s the cost for a universal life insurance policy be less than a whole life policy. Whole life insurance policies do build cash value which make them cost more than universal life insurance policies. One advantage of whole life insurance is whole life insurance policies are issued in smaller amounts starting at $2,000. Universal life insurance policies are issued for $25,000 or more. Another advantage of whole life insurance is it can be issued on a simplified issue basis by only answering a few health questions. Universal life insurance cost less because it’s fully underwritten which usually includes an exam. The cost for a $25,000 simplified issue whole life insurance policy for a man age 65 is less than $135 a month, whereas the universal life insurance rate is less than $65 a month. To see a permanent life insurance quote for your age simply complete the form above.
When should I buy a Universal Life Insurance Policy?
A Universal Life Insurance policy is not only the most economical permanent life insurance policy you can buy, it’s on sale now compared to any other time in your life. You’re never going to be younger than you are today, and the younger you are the less you pay. Once your policy is issued, your premium will never increase. Why wait to pay a higher premium in the future when you can secure the lowest premium ever for yourself now? If you want permanent life insurance, meaning life insurance that will last as long as you do, for the lowest possible premium, buy Universal Life Insurance.
How long do I pay for a Universal Life Insurance Policy?
You can pay for a Universal Life Insurance policy for the rest of your life for the lowest premium, or you can pay a larger premium for 10 years, or a single premium one time to pay up the policy for life. A 65 year old female with preferred plus health can pay $2,000 a year for a $100,000 policy to age 100 and the policy will be paid up to age 121, or she can pay $3,484 a year for 10 years to fully pay up the policy, or a single one time payment of $28,637.
We recently had a lady age 63 with $70,000 she wanted to leave for her grandchildren. We told her she could leave the money in the bank and in 23 years at 3% interest her money would double to $140,000 if she could earn 3% every year and lived to age 86. We suggested and she bought a $250,000 universal life insurance policy for under $70,000 that’s guaranteed to pay her grandchildren $250,000 no matter how long or short she lives, whether she lives 23 days or 23 years it doesn’t matter, the policy is paid up for her whole life. With no lease on life she felt this was by far the best deal for her.
Universal Life Insurance pros and cons. Pro: Universal Life Insurance is life insurance that will last your whole life for the most affordable premium you can pay.
If you want to be sure you have life insurance coverage for as long as you live, meaning coverage that will never expire, Universal Life Insurance is best.
Cons: If you have a temporary need, or a large amount of coverage for only a few years, term insurance is a better option because it cost less than Universal Life Insurance.
| Universal Life Insurance | Term Life Insurance |
|---|---|
| Permanent life insurance guaranteed to
age 121. Lifetime life insurance coverage. Life insurance protection for your whole life. |
Temporary life insurance guaranteed
10, 15, 20, or 30 years. The shorter the term period the lower the cost. |
| The most affordable guaranteed level premium for permanent life insurance coverage. | Low guaranteed level premiums. Best policy for temporary coverage |
| Life insurance coverage for your whole life. Permanent Life insurance protection that will not expire like term insurance. | Best for young families to pay off a mortgage, provide college educations, and replace loss income. |
Universal Life Insurance Companies
Life Insurance policies with Living Benefits
Does your life insurance policy include living benefits? Benefits you don’t have to die to use. The best policies do. Call 1-800-657-7178 to find out why.