A few years ago, I did a webinar where I explained some of the basics of whole life insurance. I also answered several questions and something that came up in the chat box was how someone had bought a life insurance policy and their premiums had increased over time.
They said they owned a whole life policy but… whole life premiums generally don’t increase over time.
Most companies that sell whole life sell guaranteed level premium policies unless the person is sick or has some special situation where they en up with an indeterminate premium.
But that’s rare. Very rare.
More than likely, the person actually owned a universal life insurance policy. These policies have “flexible” premiums. Meaning, you can choose how much to pay each month. You could pay nothing, or… pay an entire year’s premium.
The cost of insurance is deducted from the cash value account monthly. As long as there’s money in there, the insurer doesn’t really care how you pay the premium or how much.
Now… here’s where things get trick.
Many moons ago, life insurance agents started referring to universal life as “whole life” or “kinda sorta like whole life insurance” because folks were unfamiliar with how it worked or what it was but… they were very familiar with whole life insurance.
Fast forward to today… there are a bunch of people wondering around with universal life policies who believe they have whole life policies.
Anywho, what does this have to do with the price of tea in China?
Only that if you plan on buying anything other than whole life insurance, know what you’re buying. Some universal life policies are like burning matches. You have to handle them very carefully or else you get burned. Anywho, assuming you know what you want, you can use my new Quote and Apply service, which is free, to apply for either low cost term insurance or universal life insurance.
Universal life and term insurance is strictly for folks who want death benefit protection only, or death benefit and minimal (non-guaranteed) cash surrender value. I do also offer indexed universal life, but I’m considering yanking it for reasons I don’t have time to tell you about right now.
If you get stuck, send me an email.
Otherwise, you can get a quote for term or universal life in a few seconds and apply right online in about 10 minutes, give or take.
I’ve taken all the confusion and hassle out of the process. I’ve also given you access to companies that sell simple products which are easy to apply for. With that said, all term and UL policies are fundamentally non-guaranteed products. Meaning, the expenses can increase over time. With term insurance, the cost of the insurance is guaranteed to increase over time. All term policies do this. I’ve tried to keep the offerings to the simpler products in the marketplace so you don’t get beaten up on the price.
OK, enough yammering.
Go here to check it out: