In my experience, Universal Life works especially well for these groups of people:
1) Those who want permanent coverage at the lowest possible price, with no concern over whether the policy will have a lot of cash value. The type of policy they usually choose is universal life that is guaranteed not to lapse to age 100+ at a level premium.
2) Those who want to adjust one policy to fit their needs throughout their lifetime. With UL, they can increase the premium to make the policy last longer or generate more cash value; reduce the face amount as their need for life insurance goes down; or reduce or quit paying the premium if their policy can sustain itself on what has already been paid in.
3) Those who want a vehicle to generate supplemental income during retirement without the risk of losing their initial premium that they paid in. This product is called Indexed Universal Life.
Universal life can be an excellent option for an individual who wants to purchase insurance for an extended period of time. By definition, universal life is flexible in design. Premiums can be level, increasing, decreasing, or vanishing. Death benefits can be level, increasing or decreasing. Cash values can be minimal or the tax-deferred nature of life insurance can allow for the accumulation of significant amounts of cash value.
GUL could be ideal for the individual who needs permanent insurance, that covers ones entire life.
If structured properly, you could have a product with guaranteed level premiums, and a death benefit that never decreases. Sometimes people who are younger, and may need coverage beyond a 30 or 35 initial term period, may consider a product like this.
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1) Those who want permanent coverage at the lowest possible price, with no concern over whether the policy will have a lot of cash value. The type of policy they usually choose is universal life that is guaranteed not to lapse to age 100+ at a level premium.
2) Those who want to adjust one policy to fit their needs throughout their lifetime. With UL, they can increase the premium to make the policy last longer or generate more cash value; reduce the face amount as their need for life insurance goes down; or reduce or quit paying the premium if their policy can sustain itself on what has already been paid in.
3) Those who want a vehicle to generate supplemental income during retirement without the risk of losing their initial premium that they paid in. This product is called Indexed Universal Life.
If structured properly, you could have a product with guaranteed level premiums, and a death benefit that never decreases. Sometimes people who are younger, and may need coverage beyond a 30 or 35 initial term period, may consider a product like this.