1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Universal life is a cash value permanent life product to protect your family members, business associates and charities that depend on you. Most Americans have ongoing financial liabilities and future obligations. Universal life can protect your beneficiaries against your demise by paying a death benefit to mitigate the financial exposure.
    Answered on September 13, 2013
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The reason many people get Universal Life insurance is because of its flexibility. It is a permanent product that can be adjusted to last a lifetime or just a set number of years, although the minimum guaranteed period is usually at least 10 years. If you decide years into the policy that you want to increase the duration, you can increase the premium, or decrease the face amount and keep paying the same premium. In essence, one Universal Life policy can take you through the stages of life in one policy.
    Answered on September 13, 2013
  3. 1492 POINTS
    Jeff Davis
    Insurance Advisor, Lordship Insurance Services, California
    Universal Life policies offer both permanent coverage and an investment component. Not only can you elect to receive a death benefit that does not change but you can see the investment component grow the cash value of your policy. There is a definite need for policies that offer these features in today's economy.
    Answered on September 13, 2013
  4. 1976 POINTS
    Ronald Hinch
    Regional Marketing Director, Capital Choice Financial Group,
    No matter what agents will tell you, universal life insurance is never a good deal! Universal life insurance is a bundled policy consisting of an amount of life insurance and a cash value the agent calls the "investment"! The life insurance in the policy is annual renewable term where the costs go up annually. The cash value side grows at an interest rate determined by the company. This type of policy is sometimes referred as a flexible premium life insurance policy because it allows the client to pick the premium he or she wants to pay. In most policies the client is paying a premium less than the "target" premium that is need to keep the policy in force. In one of these policies there will come a time when the premium paid is less than the increased cost of coverage and at the time the automatic premium loan provision comes into play which will begin pulling from the cash value or "investment" portion of the policy. Sometime in the future this policy will collapse as the funds in the cash values are totally depleted. The client has little control of his money in this type of policy. Always keep your insurance separate from your "true" investments and you will be much better off finnacially!
    Answered on July 14, 2016
  5. Did you find these answers helpful?

Add Your Answer To This Question

You must be logged in to add your answer.

<< Previous Question
Questions Home
Next Question >>