Universal Life costs less, initially, and offers more flexibility than Whole Life, but has fewer guarantees. It allows you to determine the amount and timing of premium payments within certain limits, a major departure from Whole Life insurance, with its unchanging premiums.

In fact, when cash values are sufficient, you may actually skip premium payments, without penalty. You can also increase or decrease the amount of insurance — but bear in mind that increases will generally require evidence of insurability and decreases may incur surrender charges, which decrease over time.

Flexibility comes into play with the death benefit in another way, too. As a UL policy owner, you can usually choose one of two options: a level (fixed) death benefit or an increasing death benefit equal to the face amount, plus the amount in the policy's cash value account.

No Guaranteed Cash Value or Death Benefit

The downside of not having to pay regular fixed premiums is that UL doesn't provide a guaranteed minimum cash value or death benefit.

Guaranteed Minimum Death Benefit Feature*

Some insurers offer a no-lapse guarantee, or a guaranteed minimum death benefit in their UL policy. This feature guarantees that coverage will last a stipulated number of years - or for life, as long as a specified amount of premium is paid and no withdrawals or loans are taken.  

A variation of Universal Life, this policy insures two lives, generally a husband and wife, under one policy. Benefits are paid after the death of the surviving insured, when it's often used to pay federal estate taxes that may be due at that time.

Please contact us at life@buyhealthplan.com to learn more and acquire Universal Life Insurance.