Universal Life
Indexed Universal Life Similar Characteristics like Variable Universal Life
+ Flexible premiums + Adjustable death benefit + Policyowner decides where the cash value will be invested
Universal Life Interest Rates
+ Has a stated interest rate which is what grows the cash value and is stated for 1 year at a time. + Every year when the policy renews, the insurance company is going to look at the interest rate that their Universal Policy is paying you and is going to look at the prevailing rate and will adjust accordingly.
Survivorship Universal Life Policies are a Good Option for Insureds Who:
1. Intend to leave policy proceeds to the beneficiaries 2. Funding a buy-sell agreement on a business 3. Make charitable donations
Guaranteed Universal Life Premiums/Coverages are More $
Affordable
Guaranteed Universal Life "No-Lapse Guarantee"
As long as policyowner pays the premium, coverage remains in force.
Survivorship Universal Life is more affordable, why?
Bc it's more affordable than 2 individual permanent policies
Survivorship Universal Life Pays benefits after...
Both insureds have passed away
Survivorship Universal Life
Covers 2 people. Is a permanent life insurance.
Indexed Universal Life Investment Feature
Equity Index
Universal Life is AKA:
Flexible Premium Adjustable Life
Universal Life Interest Rate Minimum Interest Rate
Has a minimum interest rate like 1% So if the market is offering low rates, you are getting a better rate.
Universal Life - Option B
Increasing death benefit (insurance amount plus cash account)
Indexed Universal Life Primary Difference b/w Variable Universal Life
Investment feature. Variable Universal Life: Policy's cash value is dependent upon performance of 1+ investment funds. Equity Index Universal Policy: Policy's cash value is dependent upon performance of equity index.
Universal Life - Option A
Level death benefit (insurance amount only)
Guaranteed Universal Life Cash Value
None
Guaranteed Universal Life Market Reliance
None
Survivorship Universal Life is AKA
Second-to-die Life Insurance
Guaranteed Universal Life Insurances Death Benefits Remain Level Throughout Life of Policy
True
T/F: Securities License Not Required for Indexed Universal Life
True
T/F: Survivorship Universal Life Cash Value Grows Tax Deferred
True
T/F: Survivorship Universal Life Death Benefits are Paid to Beneficiaries Income Tax Free
True
T/F: Survivorship Universal Life Insured Can Raise/Lower Premiums as Needed During Policy Period
True
