So after looking at options for term life and final expense insurance coverage, there is something telling you “Is this all there is?”. Let’s dive a little deeper in the other types of life insurance available in the market.
You could call this term life insurance “super sized”. These policies have attributes of universal life with flexibility in payments. They have cash accumulation potential but we stress that these plans are designed for maximum death benefit to the beneficiary. They provide a guaranteed monthly rate up to a specific age, rather than a specific term.
Ideally these plan types are best position to provide a tax free legacy to loved ones or in charitable giving as well as overcoming estate tax concerns for high net worth persons.
Ages can range from 85 – 120 which especially in later ages serves in a practical sense as “permanent life insurance”. Once the age in the guarantee is reached however (for example 90 years old) the premium payment is no longer guaranteed and will increase dramatically.
Still this is a good option if you happen to be reasonably healthy, on a budget and cannot get say a 30 year term plan yet would want a larger death benefit. To be clear although these plans will build cash value they are designed to focus on death benefit. If you want true permanent cash value insurance there are other options. The GULs can be quoted in our free quote engine. Choose “Lifetime” in the length of term.
Whole life is the earliest form of true “permanent” life insurance. Final expense life insurance is a form of whole life but has caps on death benefits. True whole life may be issued in much larger face amounts (death benefit). Depending on age they may or may not be fully underwritten with a medical exam or paramed needed.
Our agent owners are indispensable for their understanding of the niches different companies favor and their varying standards of acceptance for a given rate class. Their services are free and do not affect your rate.
Indexed Universal Life (IUL) blends permanent insurance with a robust wealth building attribute as a long term approach. It is permanent life insurance coverage with an accumulation in terms of cash value that properly structured, can provide a tax free income stream in retirement and a death benefit when passing occurs.
How can this happen? Partly by keeping a minimum death benefit that keeps the cost of insurance down, allocating the bulk of premiums paid in to growth. The growth is tied to one or more indexes (Like the S&P) where positive returns to the plan are some portion of growth in the index. If there is no growth or negative performance in the index, the plan does not experience losses and prior gains are locked in.
Only an insurance company can position itself to do this. It is accomplished through mortality credits. Learn more about mortality credits here.
IUL quotes require some analysis of your age, health and goals and are custom designed and properly illustrated, provide a clear picture of the possibilities. There are regulations that prevent exaggeration of the potential and given that these plans have a growing history can present very reasonably accurate projections.