Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
I believe what you're referring to is flexible premium adjustable life insurance (commonly referred to as Universal life insurance) - this is a type of permanent life insurance. Under these types of programs, the policyowner has the ability to change the amount they're paying each month, manipulate the length of coverage under the policy, alter the policy face amount, all the while being able to build cash value.
One of the most popular universal life policies is Guaranteed Universal Life (GUL). In a GUL policy, you're not placing the emphasis of the coverage on the cash value the policy builds, but rather the death benefit by maximizing the value of your premium (paying the lowest possible cost for a given amount of coverage). A good way of thinking of it is like taking the term guarantee period and bringing it out for life - so it's got the essence of both term and whole life coverage in it. Under a GUL program, the policy can be structured to keep premiums level and provide coverage up to a specified age (e.g. to age 90, to age 100, or even up to age 121) under the "dial down" process.
I always recommend consulting with an experienced broker to help you determine what policy benefit structure will best serve your needs. We can shop the case if you've got a complex medical history (identifying the risk class you qualify for a very important step when buying life insurance because it determines what you pay for the coverage), review quotes, and help you through the application and underwriting processes. Please let me know if you have any other questions. Thanks very much.
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One of the most popular universal life policies is Guaranteed Universal Life (GUL). In a GUL policy, you're not placing the emphasis of the coverage on the cash value the policy builds, but rather the death benefit by maximizing the value of your premium (paying the lowest possible cost for a given amount of coverage). A good way of thinking of it is like taking the term guarantee period and bringing it out for life - so it's got the essence of both term and whole life coverage in it. Under a GUL program, the policy can be structured to keep premiums level and provide coverage up to a specified age (e.g. to age 90, to age 100, or even up to age 121) under the "dial down" process.
I always recommend consulting with an experienced broker to help you determine what policy benefit structure will best serve your needs. We can shop the case if you've got a complex medical history (identifying the risk class you qualify for a very important step when buying life insurance because it determines what you pay for the coverage), review quotes, and help you through the application and underwriting processes. Please let me know if you have any other questions. Thanks very much.