Universal Life Insurance is a form of permanent insurance.  When purchased properly it provides a lifetime locked in rate and guaranteed coverage until you die.

Buy Universal Life the right way!

When you acquire a universal life policy your premium will normally exceed the actual cost of the insurance.  The extra money you give to the insurance company is then invested at a fixed rate that is determined by the insurance company.

This rate will change, sometimes monthly, sometimes quarterly, or in certain situations annually.  The frequency is determined by the insurance company and disclosed to you.

When an agent shows you a universal life proposal it will normally have 3 columns that illustrate the cash values and insurance provided for each policy year.

One column illustrates the guaranteed interest rate, another shows the current interest rate, and the third shows a rate that is between the guaranteed rate and the current rate.

Pay attention to the guaranteed column!  It shows you what you policy values will be and if the policy could ever potentially lapse.  A policy will lapse if in later years there is not enough cash available to cover the increasing cost of insurance as you get older.

The guaranteed rate illustration will show the death benefit being reduced to "0" if this is a possibility for the plan you are considering.

This is the column you and your agent should be focusing on.  Otherwise it is possible you could pay your premiums for years and wind up with nothing later on when you are older and the cost of getting life insurance has increased due to your age, and maybe your health.

Instant Universal Life Insurance Quotes

Only purchase a "no lapse guaranteed" Universal Life Policy!

If you buy a policy with a "no lapse guarantee" this will never occur as long as you never access the cash buildup within your policy.

No lapse guaranteed Universal Life policies are guaranteed to always provide you with coverage, no matter what interest rate the insurance company pays you.