<img height="1" width="1" style="display:none" src="https://q.quora.com/_/ad/c4ba33543f6649e78450d9e83622f5af/pixel?tag=ViewContent&amp;noscript=1">
extended family looking at notepad

Affordable Universal Life Insurance for Seniors

 

A universal life insurance policy protects you for your lifetime. 

Which type of universal life policy is right for you?

Call LifeNet Insurance Solutions today at

(800) 698-7033

Universal Life is Insurance to last a lifetime

 

Universal life insurance is a popular life insurance choice for permanent coverage. There are several different types of universal life policies, with the lease expensive being a guaranteed premium plan. 

These policies are best purchased using an independent agent. They will have many companies to choose from and be able to explain how the policies work. 

Premiums for universal life insurance are more expensive than for term life insurance options, but they can be structured for the premium and the death benefit to remain level for your life span.

 

To learn more download The Ultimate Baby Boomers Guide to Life Insurance.

 

Types of Universal Life Insurance 

Guaranteed Premium Universal Life Insurance 

 

Guaranteed Premium Universal Life Insurance is not only the most common type of universal life insurance, it also provides the best value.

Universal policies are very flexible. There are many different options available when structuring the policy. Keeping the cash value low, or non-existent helps to keep the premium low. These policies can be set up to  keep the face amount and premium the same for the lifetime of the plan.

You can choose an age at which the policy will end, such as 90,95,100, up to 121. The longer the guarantee, the more expensive the coverage.

These plans require full underwriting, including a paramedic exam, blood and urine collection and usually ordering doctor records. 

 

Free Permanent Life Insurance Quote With Medical Exam

 

Indexed Universal Life Insurance

 

Indexed universal life insurance was created by an act of Congress in 1982, and allows life insurance to be used for "living benefits". Briefly, it allows for the cash accumulation of funds in addition to the death benefit. This cash is invested, not in individual stocks, but in indexes such as the Nasdaq 100 or the S&P 500.

The cash portion of the policy invested in these indexes have both a floor and ceiling so that if the market increases, a portion of the increase goes to the cash value of the policy, while  and market decrease will not affect the value of the policy fund.

Because cash in the policy can be borrowed out without a taxable event, and the death benefit is also non-taxable in most situations, it allows individuals to use this type of life insurance as a "tax-free" retirement account. 

This type of life insurance can be complex. It is our job to explain how this might work for you.

Variable Universal Life Insurance


Variable Universal Life Insurance is considered a security and is regulated by the Financial Industry Regulatory Authority (FINRA). It can only be sold by a registered representative. 

 

 

Other Universal Life Insurance Coverage

 

Cash Accumulation Universal Life is structured to build up cash value quickly in the early years.

Current Assumption Universal Life offers coverage at a low cost because the death benefit is not guaranteed. 

Happy middle age man with phone giving a thumbs up about life insurance for seniors

Pros and Cons of Universal Life Insurance

Pros:

1. The policy can last for your lifetime.
2. A GUL can be set so that the premium and face amount remain the same for your lifetime.
3. Underwriting is usually less stringent than for term policies.

Cons:

1. Universal policies are more expensive than term coverage.
2. If you are young with a family, this may not be the right product for you because you can buy much more term coverage while your children and your estate are growing.

Chronic and Critical Care Riders for Universal Life Insurance

 

In additions to premiums there are several other points that should be considered by the consumer but are generally unknown to most buyers.  I am speaking of several new riders that are available on some policies today, and most likely will become more the norm as time goes on.

For example, several universal life carriers offer an enhanced chronic illness benefit rider that can allow the insured to obtain a maximum of 2% of the face value of their policy on a monthly basis.  This rider can be accessed under certain conditions including a statement by a licensed healthcare provider that the impairment has occurred in the last year and must be re-certified annually.  What’s more, the qualifications for this benefit are similar to or exactly the same at those qualifications that allow access to funds for those who own Long Term Care policies.   

While this rider does not offer many of the benefits of an LTC policy such as inflation riders and less stringent underwriting requirements, the cost of the universal policy with a substantial death benefit will in many cases, can be significantly less.

Benefits of an Independent Life Insurance Agent

 

Utilizing a LifeNet Insurance Solutions independent agent is free! In addition to having a professional and knowledgeable resource at your fingertips our agents can work with companies you can't access on your own.

If you’re currently searching for affordable life insurance for seniors via online quote engines, our independent agents can simplify the process. They will send you a list of all the carriers and prices. They can show you illustrations for Universal Life Insurance Policies you are considering. The illustration will explain how the policy will work.

When you apply for a fully underwritten policy the insurance underwriter may request additional information. Having an agent who is efficient with these processes will help avoid any application delays.

LifeNet Insurance Solutions’ agents are also extremely knowledgeable when it comes to the underwriting process and which policy will work for your situation and goals.  Contact us today to receive more information about our universal life insurance quotes!

Get Your Free Copy of "Life Insurance 101" to learn more