Comments on: Universal Life Insurance http://www.lifeinsurance.net Universal Life Insurance or Term Quotes Rates and Agents Sun, 06 Nov 2011 14:35:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Kim Ranzau http://www.lifeinsurance.net/universal-life-insurance/#comment-13849 Kim Ranzau Tue, 04 Oct 2011 20:47:03 +0000 http://www.lifeinsurance.net/?page_id=6#comment-13849 I recently got divorced and my ex-husband was ordered by the Court to obtain a life insurance policy for $750,000.00 to cover the child support for our 29 year old mentally handicapped daughter until she is 77 in case something happens to him. I finally received a copy of the policy and it is a Flexible Premium Adjustable Life Insurance Policy and the policy shows under Benefit Information - Initial Specified Amount $750,000.00, Minimum Specified Amount $50,000.00. I have a colleague who owns his own insurance agency and I sent a copy of the policy for him to look over. He is telling me that the Death Benefit is determined by the amount of premiums paid into the policy. Currently it is set up for semi-annual payments of $1,735.00. My concern is that if something happened to him that there would not be $750,000.00 worth of Life Insurance to take care of my daughter in her later years and she is not able to support herself. Can you give me more info about how these types of policies work. I have read the policy and tried to look up information on the internet, but it is confusing. Thanks, Kim I recently got divorced and my ex-husband was ordered by the Court to obtain a life insurance policy for $750,000.00 to cover the child support for our 29 year old mentally handicapped daughter until she is 77 in case something happens to him. I finally received a copy of the policy and it is a Flexible Premium Adjustable Life Insurance Policy and the policy shows under Benefit Information – Initial Specified Amount $750,000.00, Minimum Specified Amount $50,000.00. I have a colleague who owns his own insurance agency and I sent a copy of the policy for him to look over. He is telling me that the Death Benefit is determined by the amount of premiums paid into the policy. Currently it is set up for semi-annual payments of $1,735.00. My concern is that if something happened to him that there would not be $750,000.00 worth of Life Insurance to take care of my daughter in her later years and she is not able to support herself.
Can you give me more info about how these types of policies work. I have read the policy and tried to look up information on the internet, but it is confusing.
Thanks, Kim

]]> By: LifeInsurance.net http://www.lifeinsurance.net/universal-life-insurance/#comment-6566 LifeInsurance.net Tue, 21 Jun 2011 18:23:20 +0000 http://www.lifeinsurance.net/?page_id=6#comment-6566 Universal life policies have flexible premiums, you have a choice in how large of a payment you send in every month. Nevertheless, the underlying cost of keeping the policy in force remains the same whether you pay enough premium or not. If you short the premiums below the maintenance cost of the policy the policy eventually lapses. That seems to be the case here. Your agent set your premiums low enough that they can't support the policy and keep it in force. He probably guessed that you would earn a higher interest rate than it actually worked out. Your best bet is to look at replacing the policy with a guaranteed policy, and pay the premiums at the guaranteed rate. Give us a call at the 800 958 0028 and we can advise you on your policy in particular. Universal life policies have flexible premiums, you have a choice in how large of a payment you send in every month. Nevertheless, the underlying cost of keeping the policy in force remains the same whether you pay enough premium or not. If you short the premiums below the maintenance cost of the policy the policy eventually lapses. That seems to be the case here. Your agent set your premiums low enough that they can’t support the policy and keep it in force. He probably guessed that you would earn a higher interest rate than it actually worked out. Your best bet is to look at replacing the policy with a guaranteed policy, and pay the premiums at the guaranteed rate. Give us a call at the 800 958 0028 and we can advise you on your policy in particular.

]]> By: L Windsor http://www.lifeinsurance.net/universal-life-insurance/#comment-3800 L Windsor Thu, 28 Apr 2011 19:13:27 +0000 http://www.lifeinsurance.net/?page_id=6#comment-3800 I have a universal life policy with Met Life for $500K started 7/19/1987. It has an accumulation fund of 2447.14 as of now. I have always paid the $78/mos premium. It say that if I continue to pay the premium as scheduled, on the basis of current interest rates and cost of insurance charges, my coverage will remain in effect until Feb 2012. YET, as I understand your info above, the policy should remain in effect until I am age 100, as long as I continue to pay the premiums of $78/mos established in 1987. Which is correct? Thanks, L Windsor I have a universal life policy with Met Life for $500K started 7/19/1987. It has an accumulation fund of 2447.14 as of now. I have always paid the $78/mos premium.

It say that if I continue to pay the premium as scheduled, on the basis of current interest rates and cost of insurance charges, my coverage will remain in effect until Feb 2012.

YET, as I understand your info above, the policy should remain in effect until I am age 100, as long as I continue to pay the premiums of $78/mos established in 1987.

Which is correct?
Thanks,
L Windsor

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