A universal life insurance policy gives you the flexibility to choose the amount of protection that best fits your needs. Flexible death benefit amounts and premiums allow you to keep pace with today's changing life circumstances while building tax-deferred cash value.
Guaranteed Universal Life Insurance
Are you looking for universal life insurance protection with cash value accumulation, but the numbers just aren’t adding up? Consider guaranteed universal life insurance as an alternative. Flexible death benefit amounts and premiums allow you to keep pace with today’s changing life circumstances while building tax-deferred cash value. As your needs change, the policy can change with you by allowing you to increase or decrease coverage.
Guaranteed universal life insurance now sells at prices well below the guarantees of the old current assumption universal life plans sold in the 1980s and 1990s. The guaranteed UL policies are often referred to as “secondary” or “no lapse” guarantee products.
Features of Universal Life Insurance:
Universal life insurance provides coverage with competitive rates
Flexible premium payments and death benefits
Various riders to customize the policy to meet your needs
Guaranteed death benefits through age 120
Tax-deferred cash value accumulation
Often, when one thinks of universal life insurance, they remember how the old policies would lapse if the cash went down to the point that it was insufficient to cover a policy's increasing cost of insurance and the expense charges built into the policy. With the no-lapse feature or "secondary guarantee", the policies are contractually guaranteed to stay in-force for the guaranteed period (typically to age 100 or age 120) if the premium is paid regularly and on time, even if the cash value decreases to zero dollars. The design of the newer guaranteed UL plans with low guaranteed premiums and guaranteed death benefits make it an extremely attractive purchase for those that want a permanent death benefit but don't want to pay a whole life type of premium.
Why pay higher premiums to build cash value, when all you want to do is "buy a death benefit"? If you could pay term like premiums but have a "whole life" benefit would that make sense to you?
When you consider what has happened with life products tied to equity markets, it is easy to understand the draw to guaranteed life insurance policies. Carrier illustrations provide supporting documentation that guaranteed UL death benefits can deliver internal rates of return (depending on age at issue underwriting class) on premiums paid of 6 percent or more at age 90, 4 or 5 percent at age 95, and 3 or 4 percent at age 100. Additionally, consider that life insurance proceeds are passed on to beneficiaries income tax free.
If you are interested in any of our life insurance plans, just pick up the phone for an easy-to-get quote. Reynold Jones Insurance Group is the insurance company Bedford, Hurst, & Euless has relied on for over two decades, and we get not only quotes done right, but policies done right as well.