be_ixf; php_sdk; php_sdk_1.4.18 iy_2020; im_01; id_14; ih_07; imh_15; i_epoch:1.57901495716E+12 ixf-compiler; ixf-compiler_1.0.0.0 py_2020; pm_01; pd_05; ph_18; pmh_36; p_epoch:1.57827817556E+12 bec-built-in; bec-built-in_1.0.1; bodystr pn_tstr:Tue Jan 14 07:15:57 PST 2020; pn_epoch:1.57901495716E+12 Having life insurance doesn’t have to be a one-size-fits-all experience. Universal life insurance allows you to make certain changes to the policy to better fit your needs. But knowing how this works requires understanding the universal life insurance definition. So let’s talk about what universal life is; explore what you can do with the policy’s premium, savings feature, and death benefit; go...
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What Is Universal Life Insurance? Universal life insurance was developed in the late 1970s to overcome some of the disadvantages associated with term and whole life insurance. As with other types of life insurance, you pay regular premiums to your insurance company, in exchange for which the insurance company will pay a specific benefit to your beneficiaries upon your death. As with whole life insurance, a portion of each payment goes to the insurance company to pay for the pure cost of insurance. The remainder is invested in the company’s general investment portfolio, with the potential to build cash value. Most universal life policies pay a minimum guaranteed rate of return. Any...
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The original version of this article ran on Dec. 9, 2014. In it, long before certain regulatory actions increased the appeal of life-based financial arrangements, Jordan H. Smith explained the appeal of indexed universal life insurance products. Everything we do in life involves some element of risk. Some risks are known, and believed to be understood, while others are more uncertain and involve either probability or magnitude that we find difficult to quantify. When investing, we generally seek to obtain the highest return possible given the amount of risk that we are able and willing to tolerate. Unfortunately, gauging the degree of risk associated with various investments is not always...
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Universal Life Insurance Universal life insurance is permanent life insurance — that is, it remains in force for your whole life. But universal life insurance has an important difference from other types of permanent insurance: it provides a flexible premium. That means the policyholder decides how much to put in above a set minimum. By extension, the policyholder also determines the face amount of the policy. Universal life insurance policies accumulate cash value — cash value that grows tax deferred. Guarantees are based on the claims-paying ability of the issuing company. Universal life insurance policies normally let policyholders borrow a portion of their policy’s...
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Roughly 40% of Americans currently do not own any form of life insurance. If you’re among them, you know you’re putting your family’s financial security at great risk. If something happens to you, will they be able to afford basic living expenses? Without your income, will they have to make sacrifices like selling the family home, taking on a second job, or facing tough decisions about the future of your children? Guaranteed universal life insurance may be the solution you’ve been looking for, especially as it has the lowest premiums of any permanent life insurance policy. Read on to learn more about what the policy is, who it’s right for, and some of the best providers of guaranteed...
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Universal Life Insurance Universal life insurance is permanent life insurance — that is, it remains in force for your whole life. But universal life insurance has an important difference from other types of permanent insurance: it provides a flexible premium. That means the policyholder decides how much to put in above a set minimum. By extension, the policyholder also determines the face amount of the policy. Universal life insurance policies accumulate cash value — cash value that grows tax deferred. Guarantees are based on the claims-paying ability of the issuing company. Universal life insurance policies normally let policyholders borrow a portion of their policy’s...
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What factors may affect the performance of existing permanent life insurance policies? • The first is the interest rate return on the underlying investment that provides the cash value in the policy. In Universal Life (UL) and Whole Life (WL) policies, the investment account is in insurance company directed investments. As you can see from the chart on the right, the Universal Life policy interest rate return has decreased from 1984 to 2014. In Variable and Variable Universal Life (VUL) policies, the cash value is invested in separate accounts with the asset classes chosen by the policy owner. • The second factor is the amount of expenses in the policy, including the acquisition costs (...
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Danny Young Investment Advisor Representative Danny Young has served in the financial services industry for over 40 years. He is owner and president of Independent Retirement Professionals and has trained and mentored countless individuals since the firm’s inception in 1991. As an Investment Advisor Representative with Voya Financial Advisors, he holds the Series 6, 7, and 66 registrations. For multiple years, Danny has been honored with the prestigious Premier Partner title, earned by the top 15% of affiliated Voya representatives. Premier Partner status is bestowed upon those representatives who demonstrate investment planning success, show unwavering dedication to clients, and reach...
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Universal Life Insurance Universal life insurance is permanent life insurance — that is, it remains in force for your whole life. But universal life insurance has an important difference from other types of permanent insurance: it provides a flexible premium. That means the policyholder decides how much to put in above a set minimum. By extension, the policyholder also determines the face amount of the policy. Universal life insurance policies accumulate cash value — cash value that grows tax deferred. Guarantees are based on the claims-paying ability of the issuing company. Universal life insurance policies normally let policyholders borrow a portion of their policy’s...
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Universal Life Insurance Universal life insurance is permanent life insurance — that is, it remains in force for your whole life. But universal life insurance has an important difference from other types of permanent insurance: it provides a flexible premium. That means the policyholder decides how much to put in above a set minimum. By extension, the policyholder also determines the face amount of the policy. Universal life insurance policies accumulate cash value — cash value that grows tax deferred. Guarantees are based on the claims-paying ability of the issuing company. Universal life insurance policies normally let policyholders borrow a portion of their policy’s...
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