Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Commonly known as Universal life insurance, this is a type of permanent life insurance program that helps you to maximize your death benefit and minimize your premium for your permanent life insurance coverage. The emphasis of the coverage is placed on the death benefit (as opposed to the cash value like in whole life insurance) allowing you to optimize your dollars.
Flexible premium programs allow you to pay more or less than the regular monthly premium. Doing so, however, can affect the guarantees inside of the policy.
With any permanent program (with the exception of certain participating whole life policies), the carrier takes back any cash value remaining in the policy upon the death of the insured and pays out the death benefit proceeds (the face amount of the policy). If you're buying permanent coverage for the sole purpose of the death benefit, you want to look at buying a GUARANTEED Universal Life policy (GUL). These policies can be structured to keep the premiums remaining fixed and guaranteed for life (or guarantee them up to a specified age - e.g. 90, 95, 100, or up to 121).
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Permanent insurance has two elements, cash value, and mortality cost. Flexible premium policies do not provide the standard guarantees contained in a whole life policy, rather they allow you the flexibility of determining your contributions to the plan and even flexibility in determining the face amount. They do this by taking the whole life policy apart and having a special fund develop the cash value. The company has passed to you the risk of making sure that the policy lasts as long as you do.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Five easy steps:
1. Pick a face amount.
2. Pick a premium to pay.
3. Pick a period for which you need coverage.
4. Meditate a bit on this: these three elements are interconnected. If you alter one, it will affect the others. For example, if you reduce the amount you pay, you could reduce both the face amount, and the period for which the coverage is guaranteed.
5. Go ahead and live your life. It’s a product that can be manipulated as your life circumstances change. But make sure you consult with your representative every time you want to make a change in the policy. Make informed decisions.
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Flexible premium programs allow you to pay more or less than the regular monthly premium. Doing so, however, can affect the guarantees inside of the policy.
With any permanent program (with the exception of certain participating whole life policies), the carrier takes back any cash value remaining in the policy upon the death of the insured and pays out the death benefit proceeds (the face amount of the policy). If you're buying permanent coverage for the sole purpose of the death benefit, you want to look at buying a GUARANTEED Universal Life policy (GUL). These policies can be structured to keep the premiums remaining fixed and guaranteed for life (or guarantee them up to a specified age - e.g. 90, 95, 100, or up to 121).
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
1. Pick a face amount.
2. Pick a premium to pay.
3. Pick a period for which you need coverage.
4. Meditate a bit on this: these three elements are interconnected. If you alter one, it will affect the others. For example, if you reduce the amount you pay, you could reduce both the face amount, and the period for which the coverage is guaranteed.
5. Go ahead and live your life. It’s a product that can be manipulated as your life circumstances change. But make sure you consult with your representative every time you want to make a change in the policy. Make informed decisions.