Type of coverage:
Permanent. Builds cash value.
Premium can be increased or decreased at anytime (with certain
limits). Premiums can even be skipped. This however will have
a direct impact on the cash
When designed properly, premiums may never increase which
makes it a very attractive alternative to term life insurance.
Cash value may be used to pay premiums.
Cash value accumulation depends on current and future interest
rates and current and future policy charges imposed by the
company. Interest is guaranteed to never go below a certain
percentage (usually 4%). Policy charges are guaranteed never
to pass a certain level. This worst case scenario (minimum
interest, maximum charges) is illustrated below by the guaranteed
Current interest and charges are illustrated below by the
Actual performance may differ.
Death benefit guarantee is optional.
Universal Life is a very flexible type of insurance with numerous
different options. It can be customized to fit your particular
situation. It is a valuable tool to supplement retirement
income since it offers tax deferred growth of the cash value
and potentially level, guaranteed premium.
The actual cash value performance - when illustrated in periods
of low interest - may be significantly higher since the long
term average interest might be substantially higher that the
illustrated interest and vice versa.
35-year-old male, healthy, non-smoker, $ 250,000 Death
benefit, $ 1700 annual premium