With a Universal Life Insurance policy, say my premiums are $150.00 per month and I want to increase them to $250.00 per month, to increase the death benefit, will the death benefit be based on the date I originally purchased the UL or on the date I want to do the increase?

  1. 5082 POINTS
    J Paul Wilson CFP, CHFC
    Certified Financial Planner, JPW Insurance Retirement Investments, Halifax, Nova Scotia, Canada
    It depends on the design of the policy. Universal Life Policies, issued in Canada, tend to be either a level death benefit or death benefit plus the fund value. If the policy is death benefit + fund and increases the premium then the death benefit would be increased by the fund (cash) value). If the policy is level death benefit the increase in premium will impact the fund value, however, not usually increase the death benefit.
    Answered on October 10, 2017
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