I recommend choosing a No
Lapse Guarantee Universal Life Policy if you plan to go with a permanent policy — this way your policy is guaranteed never to expire as long as you pay your required premium payment, which is guaranteed never to increase.
Unlike whole life or traditional universal life policies, a no - lapse
guarantee universal life policy ensures the premium will never change or coverage will lapse as long as you make your on - time premium payment.
Just
like guaranteed universal life policies do to age 100 or 120, these riders mandate that even if the policy has no cash value, the death benefit and premium are still guaranteed to stay fixed during the initial term selected.
Pendell
said guaranteed universal life policies are available with death benefits of $ 50,000 to $ 10 million or more, making them ideal for paying for final expenses or for reducing or avoiding estate taxes.
Unlike term and whole life insurance, which offer fixed premiums,
guarantee universal life policies allow you to vary the amount and timing of your premiums — and even the death benefit — based on your individual circumstances.
Again assuming a $ 5 million single premium in a preferred rate class, a male age 50 could purchase a
fully guaranteed universal life policy to transfer $ 31 million in wealth, a female $ 37 million.
The cost
for guaranteed universal life policies are very low since they focus on providing you one thing... guaranteed lifetime protection WITHOUT the cash value buildup and investment component that makes whole life so expensive.
The company we've selected has terms ranging from 10 to 30 years (many companies only offer 10 and 20 year term) and offers conversion to a competitively
priced guaranteed universal life policy (some companies, like Primerica, don't offer conversion).
However, for long term estate tax planning for liquidity,
a guaranteed universal life policy should be considered as minimum protection due to the rising cost of term insurance over a lifetime.
Universal life may be designed as either an indexed universal life policy, variable universal life policy, or, as mentioned,
a guaranteed universal life policy.
Because all term life policies either expire in say, 10, 15 or 20 years (or otherwise will gradually increase premiums), the greatest PRO when comparing term life is that the there is no expiration of the guarantee period on
a guaranteed universal life policy, and the premiums can stay level.
A very common approach is to use a second to die life policy OR
a guaranteed universal life policy to fund a stand alone special needs trust upon the trustmaker's death.
In reality, most people who are seriously considering
a guaranteed universal life policy for securing a permanent death benefit should probably forget about the other types of universal life insurance and focus on a comparison with traditional whole life insurance.
Many people also use a universal life policy or
a guaranteed universal life policy to tap the cash value while they are still alive.
Although the initial death benefit is lower than with
the guaranteed universal life policy, overtime the death benefit of a properly structured whole life policy may far surpass what other insurance policies will offer.
In certain situations,
a Guaranteed Universal Life policy is a better and cheaper option than a similar Term life policy.
It's important to understand why
a guaranteed universal life policy might be the best choice to use for this as opposed to other permanent life insurance products.
If you need life insurance that will stay in force no matter how long you live and are not concerned about building cash value, then
a guaranteed universal life policy or even a universal life policy designed properly is often the best option.
With
a guaranteed universal life policy this is coverage that can be structured to last for your entire life with a guarantee that as long as pay your premium the policy stays in force.
In most instances, a permanent type of life insurance, such as whole life or
a guaranteed universal life policy, will be the only option available.
TermLife2Go weighs in: AG's
Guaranteed Universal Life policy is a great choice for those who want permanent protection without the high price of whole life.
However, if you need coverage for more than 30 years (past age 83) you might want to go with
a guaranteed universal life policy instead.
You might want to look into
a guaranteed universal life policy.