1. 1313 POINTS
    Lenny RobbinsPRO
    Principal, LifeNet Insurance Solutions, Redmond, WA
    Not necessarily. You should call your agent or the insurance company and ask them for a "current illustration" which will give you an idea of how long your policy will last. Based on that, you should be able to make an intelligent decision about keeping the coverage in force.
    Answered on April 6, 2015
  2. 11498 POINTS
    Jason GoldenzweigPRO
    Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
    No. The guaranteed side simply means the coverage is guaranteed to remain in effect until that point as long as the premiums are continued to be paid at their current rate - as universal life insurance is defined as flexible premium coverage, you have the option to increase the premium you're paying to extend the guarantee side.

    The current side determines when the coverage would actually run out - however, the current side is always subject to change as it reflects whatever the current interest rates are. If the interest rates change, then the current side will change as well. In addition, if the carrier raises their costs of insurance charges under the policy, then the cash value can be depleted even faster thus lowering the current side coverage projection even further.

    If you're unsure what you have, you can contact the carrier to send you an up-to-date illustration (a coverage projection citing how long the coverage will remain in force based on today's figures).

    It sounds to me as though the policy that you have is a current assumption universal life program rather than a guaranteed universal life program (which can guarantee premiums remain fixed and guaranteed up to age 121). Current assumption policies typically have limited guarantees under their programs and require additional premiums if the cash value is depleted - meaning they will "crash" if the cash value hits $0 (you would therefore need to pay more in premiums above what you're already spending to keep the coverage going or else it will lapse). Guaranteed universal life policies state that even if the cash value hits $0, the coverage will still continue as long as your regularly scheduled premiums are paid.

    If you prefer to have something that guarantees coverage for life rather than risking coverage lapsing after age 75, you may want to consider setting up a guaranteed universal life policy.

    I hope the information is helpful - please feel free to contact me for help with your coverage and if you have any other questions. Thanks very much.
    Answered on April 6, 2015
  3. 10968 POINTS
    Tim WilhoitPRO
    Owner, Your Friend 4 Life, Brentwood TN
    If your illustration states zero at age 75, you and your agent set your premiums up for that age. You do need to contact your insurance company for a current illustration. You may need to adjust your premiums up to avoid a zero value. The great thing about universal life is you may adjust up or down on premiums throughout the life of the policy to accomplish different goals. The sooner you take care of this the more affordable the premium increase will be.
    Answered on April 7, 2015
  4. 723 POINTS
    Everett Debrow, Jr.
    Principal Agent, Patriarch Associates,LLC, Opelika, Alabama
    No, you don't have to lose coverage, but a characteristic of universal life allows for flexible premiums; you choose what you want to pay. At the time of purchase, your agent must have set premium at the level that the illustration shows zero at age 75. Most likely, you will only need to adjust your amount of premium up, but you must get a current illustration to know how much is needed to keep coverage in force. It will certainly take some upward adjustment of premium, since you reached a zero value at your present premium level.
    Answered on April 7, 2015
  5. 63333 POINTS
    Peggy Mace, Certified Senior Advisor (CSA)®PRO
    CEO, Outlook Life, Inc, Most of the U.S.
    If you are referring to the DEATH BENEFIT going to 0 at age 75, the answer is POSSIBLY. It depends on two factors: 1)interest rate, and 2) cost of insurance.

    When you look at the guaranteed death benefit column in your policy, that is the SHORTEST length of time it will stay in effect. That means if your 1) interest rate dropped to the lowest rate right after you got the policy, and 2) the cost of insurance went up to the highest rate right after you got the policy, you can still be assured your policy will last to age 75.

    If the interest rate never drops that low, and the cost of insurance never goes up that high, your policy will probably last past age 75...maybe even much longer.

    Now, if you asking about whether your policy will lapse if the CASH VALUE drops to 0 at age 75, then that is a different story. The cash value on some UL policies is 0 for many years, and the policy will still stay in effect.

    As the other contributor stated, you can get a current illustration to check on these factors. But it is a great question, as you need to understand the terms to read the illustration. Thanks for asking!
    Answered on April 8, 2015
  6. 21750 POINTS
    Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! Call your agent as soon as you can, and ask them to give you a current illustration for your policy. Here's the deal - Your policy is like a glorified term policy - that means it's only designed to last a period of time and then eat itself and die, unless interest rates are high ( which they haven't been for years) or you overpay your premiums ( which no one does). With these policies, the cost of the insurance and fees increase every year, and are not factored into your premium payment. When the cost of your insurance becomes more than your payment, it begins to dip out of your cash value to compensate for the shortage. Once that cash value is depleted (and it sounds like your policy was designed to do that at age 75 for you) your policy lapses unless you pay more to keep it alive. That is typically financially unrealistic for most, and your coverage ends.
    Please contact your agent, and get a look at where your policy stands, and what your options are. Good luck, and thanks for asking!
    Answered on April 11, 2015
  7. 11773 POINTS
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    There should also be more to the illustration than just the guaranteed column. There should be a current rate assumption as well. While they may match, the company may be paying a greater interest rate than the guaranteed rate, so you policy could last longer. All of this depends however as universal life policies were also known as "flexible" life policies back in the day. What that means is you can pay your premiums, skip your premiums, take money out, put money back, so without seeing what you've done over the years with your policy it is hard to give sound advice. If you no longer have your agent, contact the insurance company directly and they will either assign you an agent or help you directly to understand where you are with your policy
    Answered on April 16, 2015
  8. 7479 POINTS
    Steve KobrinPRO
    President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
    I think it means that you lose the guarantee at age 75.

    At that point what will happen?

    The insurance company could very well send you a bill for a premium that is much, much higher than what you have been paying.

    Or, they may want to pay for the policy from your cash value, if that is a provision in the contract.

    Either way, you may be faced with options that you just don’t want.

    It would be best for you to take charge of the situation now and do two things:

    1. Get an in-force report showing current and future values, to see what you can expect on the policy going forward;

    2. Shop out the coverage to see if another policy would help you better meet your goals.
    Answered on April 27, 2015
  9. 5877 POINTS
    Stan Cox IIPRO
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    It's good that you're asking this question! As you can see from the other answers that if you pay only the premium that was "guaranteed" to you when you bought the policy, yes your insurance benefit will end when the "guaranteed" side goes to zero. That's my biggest issue with "Universal Life" insurance. As was already stated by another here, "Universal is glorified Term", but it's hardly ever explained that way when it's sold. Depending on your age and health I would most likely recommend that you replace it with a Whole Live, Cash Value policy that doesn't terminate it's benefit until it gets paid.
    Answered on May 19, 2015
  10. 1976 POINTS
    Ronald HinchPRO
    Regional Marketing Director, Capital Choice Financial Group,
    This is the "gotcha" in a universal life policy! You see. universal life insurance is an expensive type of insurance to have. The average cost of coverage is around $14/thousand dollars in face amount. Also, the cost in the early years begins very low and increases each year over time. So, the premium you pay is divided between your insurance and your cash value. If you are not paying your "target" premium which guarantees you lifetime coverage, then at some time in the lifetime of your policy the cash values will zero out. It is important to point out that in a policy where you are not paying the target premium the additional money needed to pay this deficit comes from the cash values and, of course will be eventually depleted. Now, the only way to reestablish the policy is to pay the increased premium at that time which is usually much too high. If you are 75 you should really examine if you really need any life insurance. You should be self-insured by that time.
    Answered on April 8, 2016
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