What makes Universal Life (UL-II) different?
Traditional permanent life insurance provides a guaranteed level death benefit and assumes you will pay a fixed level premium for a certain number of years, or for life.
Several years ago, when interest rates were at quite a high level, the Universal Life insurance plan was developed. Universal Life credits the policy value with interest rates based on current market conditions. There are no absolute guarantees; but if interest rates go down, the flexibility of Universal Life permits greater premiums to be paid or an adjustment in the death benefit, thus assuring continuous protection for life.
UL-II is a "back-end" load Universal Life policy. It features all the advantages inherent to Universal Life:
- Adjustable death benefits
- Flexible premium arrangements
- Policy value credited with current interest rates
- And now - guaranteed insurance protection
During the first four policy years, your UL-II is guaranteed to remain in force provided you pay the minimum premiums as they are due. Even if, because of an unforeseen drop in interest rates, the cash value of your UL-II is not sufficient to keep the policy in force, your UL-II will stay in force for the first four policy years. Thereafter, it will remain in force as long as the cash value exceeds the monthly deduction.
UL-II lets you decide
This combination of guaranteed coverage and total flexibility creates an attractive life insurance plan-UL-II.
- You decide how much you premium payments are (subject to minimum and maximums)
- You decide how often to make your premium payments, or if you need to make them
- You decide on the benefit amount-increase it or reduce it
- You custom design your UL-II to fit your needs today-then after the first policy year you can adjust the plan…the benefit, the premium or both-to adapt to your changing needs.
How UL-II works:
- UL-II Universal Life Plan is as simple and uncomplicated as it is adaptable.
- Your premium payments are directed to the policy value. The policy value is the accumulation of premiums, plus interest, less 1) 7.5%* charge on each premium, 2) monthly deduction and 3) partial withdrawals, if any.
- The policy value less any surrender charge yields the cash value. There is a surrender charge only during the first nine years. It is based on a factor per $1,000 of insurance. The policy value and the cash value in the tenth year and later are equal. There is no longer a surrender charge. In the event an increase in the face amount is applied for and issued, a surrender charge will be applicable to the increase for nine years from the effective date of the increase.
- *$250,000 and over, 2% charge.
- Current interest rates will be credited to the policy value, as declared by the insurance company, and the rate is guaranteed not to drop lower and 4.5%. The current interest rate is applied to the entire policy value from the date of receipt.
UL-II benefit options:
There are two benefit options:
- Option A-provides a level death benefit, which includes the policy value.
- Option B-provides an increasing death benefit.
- You, of course, can choose the option best suited for you at this time, and, the flexibility of UL-II permits you to change from one option to the other after the first policy year.
At each policy anniversary, we will send you a statement showing all pertinent information about your UL-II plan. The statement will show the specified amount of insurance, the policy value, the cash value, interest earned and indebtedness, if any. The statement will also show premiums paid and any changes made during the year.
Is UL-II for you?
Current attractive interest rates, protection against inflation, flexibility … and favorable tax treatment, that's what our UL-II policy offers. "Is it for you?
Age is determined as of the last birth date in accordance with the contract date
- Smoker: 0-74
- Nonsmoker: 15-74
Minimum Face Amounts: Ages 0-74, $50,000
- Disability Waiver of Monthly Deduction Rider
- Guaranteed Purchase Option Rider
- Children's Term Life Insurance Rider
- Other Insured Term Life Insurance Rider
- Level Term Life Insurance Rider
- Accidental Death Benefit Rider