Universal life insurance is a complex contract. There is no simple answer to your question. Your best bet is to speak with a qualified agent who can walk you through the pros and cons of the policy options.
The premium costs will depend upon your age, whether you smoke, and your health. You also need to choose between option A and option B, which impact the death benefit amount over time. There are also a number of riders that could be added to your policy that may impact total premiums.
The challenge with trying to answer this question is that the answer is almost "as much as you want it to be". Explaining the design will help give you understanding what I mean.
Universal life has three main components: mortality costs (cost of insurance); interest (can be positive or negative); and expenses.
The mortality cost portion can be like a yearly renewable term rate or a level cost to 100 and there may be other choices such as a 15 pay. How much you pay depends on what option you have chosen.
The amount of the investment portion you can choose, between a minimum and a maximum. Again you decide.
The expense portion is usually fixed and is often guaranteed by the insurance company.
The rate you will be charge for the insurance portion is like other insurance policies, based on your age, sex, smoking habits, health, etcetera.
An independent life insurance broker, representing several companies, can help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
Universal Life Insurance with a no lapse guarantee has some of the lowest premiums in permanent coverage. That is partly because you can buy UL that has almost no cash value. Therefore, most of your premium is going to purchase death protection.
On the other hand, Universal Life Insurance can be used to create a lot of cash value, so that it can be used for expenses or retirement income. This is especially true with Indexed Universal Life or Variable Universal Life. Obviously, this premium will be much higher.
Your age, health, and policy features all also come into play in calculating the cost of Universal Life Insurance. This is definitely one of those products you don't want to purchase without some professional guidance. It is impossible to even compare two UL policies unless you understand what you are comparing.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
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There are many companies that offer universal life insurance, however, the products can vary substantially between carriers. The first thing you want to find out is which products are guaranteed universal life programs, meaning even if the cash value hit $0, the policy will still pay a death benefit as long as you keep paying your premiums.
Current assumption (non-guaranteed) universal life programs can seem great on paper and may offer a lower premium that Guaranteed Universal Life policies, but carry a lot of risk - if the cash value hits $0 under these programs, then the policy crashes and you're left with no benefits. You would subsequently have to keep paying more and more into the policy at higher amounts to keep it going.
There's many factors that go into the premium calculations for life insurance to say what universal life insurance will cost - it will be different for every person due to a number of factors including their age, amount of coverage they want, how long they want the coverage for, their risk classification, and other factors.
When comparing policies from each carrier, the first thing you need to understand and determine is the risk classification you qualify for because the risk class determines the premiums. Also, not every carrier is going to offer the same risk class for a given medical history - they each have different underwriting guidelines, meaning company A could offer standard to a given profile and another carrier may be able to offer preferred.
You should always consult with an experienced life insurance broker BEFORE applying for ANY coverage. Brokers can shop the case for you among a number of insurance companies to see which one will work best for your program and help you structure a policy that will best serve your needs and your budget.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
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The premium costs will depend upon your age, whether you smoke, and your health. You also need to choose between option A and option B, which impact the death benefit amount over time. There are also a number of riders that could be added to your policy that may impact total premiums.
Universal life has three main components: mortality costs (cost of insurance); interest (can be positive or negative); and expenses.
The mortality cost portion can be like a yearly renewable term rate or a level cost to 100 and there may be other choices such as a 15 pay. How much you pay depends on what option you have chosen.
The amount of the investment portion you can choose, between a minimum and a maximum. Again you decide.
The expense portion is usually fixed and is often guaranteed by the insurance company.
The rate you will be charge for the insurance portion is like other insurance policies, based on your age, sex, smoking habits, health, etcetera.
An independent life insurance broker, representing several companies, can help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
On the other hand, Universal Life Insurance can be used to create a lot of cash value, so that it can be used for expenses or retirement income. This is especially true with Indexed Universal Life or Variable Universal Life. Obviously, this premium will be much higher.
Your age, health, and policy features all also come into play in calculating the cost of Universal Life Insurance. This is definitely one of those products you don't want to purchase without some professional guidance. It is impossible to even compare two UL policies unless you understand what you are comparing.
There are many companies that offer universal life insurance, however, the products can vary substantially between carriers. The first thing you want to find out is which products are guaranteed universal life programs, meaning even if the cash value hit $0, the policy will still pay a death benefit as long as you keep paying your premiums.
Current assumption (non-guaranteed) universal life programs can seem great on paper and may offer a lower premium that Guaranteed Universal Life policies, but carry a lot of risk - if the cash value hits $0 under these programs, then the policy crashes and you're left with no benefits. You would subsequently have to keep paying more and more into the policy at higher amounts to keep it going.
There's many factors that go into the premium calculations for life insurance to say what universal life insurance will cost - it will be different for every person due to a number of factors including their age, amount of coverage they want, how long they want the coverage for, their risk classification, and other factors.
When comparing policies from each carrier, the first thing you need to understand and determine is the risk classification you qualify for because the risk class determines the premiums. Also, not every carrier is going to offer the same risk class for a given medical history - they each have different underwriting guidelines, meaning company A could offer standard to a given profile and another carrier may be able to offer preferred.
You should always consult with an experienced life insurance broker BEFORE applying for ANY coverage. Brokers can shop the case for you among a number of insurance companies to see which one will work best for your program and help you structure a policy that will best serve your needs and your budget.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.