Types of Universal
Life Insurance
Pros
Cons
Traditional Universal
Life Insurance
Is available with several options but normally offers cash value, flexible premium payments and lifetime coverage.
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Offers lifetime death benefit coverage
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Flexible premiums are typical
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Minimum guaranteed interest rate provides
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Most policies offer the potential for cash value growth and access*
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May be more expensive than term insurance
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Can be confusing
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Interest rates may not be as high as with other types of cash value life insurance
Variable Universal Life
Insurance
Premium payments can be allocated among different investment options to offer the potential for even greater cash value accumulation.
Indexed Universal Life
Insurance
Offers potential cash value accumulation and unlike variable universal life insurance, your earnings are typically protected from downside risk, subject to floors
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Lifetime death benefit coverage provided
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Flexible premiums are typical
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Offers cash value growth potential and access*
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You get to choose how your cash value is invested
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Investment expenses apply
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Your policy is at risk if your investments options lose value
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You may have to pay higher premiums to keep your policy in force
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Lifetime death benefit coverage
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Flexible premiums
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Cash value growth and access*
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Downside market protection
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Policy fees and expenses might be higher than with other policies
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Earning potential is lower than variable universal life because most policies are subject to cap rates
Do you have more questions about Universal Life Insurance?
Call Us:
888-274-1032
*Permanent coverage continues as long as required premium payments are made on time.
**Withdrawals and loans will reduce the cash value and death benefit of the policy.