15 August 2014 0 Comments

The Flexibility of Universal Life

My previous entry dealt with how Universal Life (UL) could be structured to resemble a 20 year term policy.  This is just one of the flexibility features of Universal Life.  There might also be some flexibility in amount of death benefit, but here I’ll deal just with premium flexibility and access to cash value in [...]

22 July 2014 0 Comments

The Permanent Policy With No Cash Value

Whole Life Insurance is the original type of permanent life insurance.  The premium is level, the cash value grows every year and the death benefit is guaranteed for life.  That all makes sense.  How, then is it possible for a Universal Life policy to have a level premium with a death benefit guaranteed for life, [...]

3 July 2014 0 Comments

The Never, Always, Everyone Fallacy

A claim made by the Auto Club referenced in my last blog triggered the topic for this entry.  It was a statement that a particular policy was recommended for all their members.  That falls in line with declarations occasionally made by agents that they never sell a certain type of policy (Whole Life is a [...]

22 May 2014 0 Comments

Some More Terminology Clarification

Here are a few more insurance terms that could use a little clarification: Surrender Charge A surrender charge is a charge made against the cash Accumulation Value of a Universal Life Policy. The charge begins at a high amount in the first policy year and gradually reduces each year, generally vanishing between the 10th and [...]

20 May 2014 0 Comments

The Language of Life Insurance

I’m guilty!  There are times when I banter around terms that mean something to me, but are meaningless—or downright misleading—to non-insurance people.  That’s why I included a Life Insurance Terminology tab on this site.  But, even with that assist, much of our “insider’s terminology” needs clarification.  So, here goes on some of those terms that [...]

1 March 2013 0 Comments

More on “When The Premium Stops”: Universal Life

In my post on February 2, I started a discussion of what happens when premium payments are stopped and how this does not necessarily mean that insurance stops.  I started with Whole Life.  Now it’s on to Universal Life. Universal Life (UL) does not have a stipulated premium that must be paid, so there is [...]