What Is Universal Life Insurance?
What you need to know about…
Universal Life Insurance
Universal Life Insurance can be used to…
- Provide coverage for longer than term life insurance
- Customize your life insurance policy to build cash value or not
- Have more flexibility in your life insurance plan
How does a universal life insurance policy work?
Universal life insurance provides flexibility by allowing you to customize your policy and make changes as needed. You can decide how long the coverage lasts and if it builds cash value or not.
People who want permanent coverage but, are not concerned with building cash value see universal life as a more affordable long-term solution than whole life.
If I want cash value how does it accrue?
Any excess premiums above the base cost of insurance goes into the cash value. With indexed universal life the cash account grows based on the performance of a stock market index such as the S&P 500.
If the stock market goes down do I lose money?
No, there are protections in the policy that prevent losses in an indexed universal life policy. When the market has a bad year your cash value account just receives zero crediting instead of going negative.
How long does universal life insurance last?
Your policy can last for as long as you like or can run out at any time you want based on your overall strategy.
Flexible premium means that you can either increase or decrease your premium amount to match your desired coverage time frame. You are in full control of your universal life policy.
Are there any additional benefits?
Yes! Our carriers offer a special benefit that can pay you cash if you suffered from a heart attack, stroke or even receive a cancer diagnosis while your policy is in force.
Do I need to take a medical exam?
No, an exam is not necessary to qualify
Universal life insurance can be customized to fit any situation
Here’s a real world example…
Jennifer
Jennifer just got a promotion at her job. She works in tech and just received a big raise. Things are looking up and now she wants to review her investments and insurance to make sure it aligns with her goals.
With this raise she will now be maxing out her 401k and IRA contributions. Jennifer is on the path to building generational wealth.
When she reviewed her life insurance she decided that a temporary (term) policy didn’t align with her long-term goals. She was concerned that if she outlived her term life insurance policy her son wouldn’t receive the inheritance she wants him to have.
After some research she realized that she didn’t want to pay the additional premiums required for a whole life policy with cash value. Jennifer’s only concern was that the coverage didn’t run out when she got older. This lead her to look into universal life insurance.
Jennifer liked the fact that she would enjoy a lower premium than whole life while still having a permanent policy that wouldn’t expire. It was also a plus that she could add to the cash value of the policy anytime she wants. She loved the flexibility universal life offers.
Sample universal life insurance pricing for a 35yr old non-smoking female in good health with no medical exam
Medical exam is optional. Favorable exam results may qualify for a lower premium amount.
- $36.89/mo
- $73.78/mo
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Here at A.L. Johnson Life Insurance Agency we pride ourselves in providing excellent service to our clients.
Need immediate assistance? Call us at 913-279-1463. You may also use the contact form below.