Term Life Insurance is considered “temporary,” because coverage term limits generally range from 10 to 30 years, but Term is also the least expensive form of life insurance.
Term can also be convertible or renewable and is often the coverage of choice for people looking to spend the least amount of money or to cover a temporary need. Experienced life insurance agents expect most term life sales to become at least two sales;
The initial term life transaction
A future replacement -OR- future term conversion
Universal Life (UL) is permanent life insurance, but with much more flexibility than traditional whole life insurance. Because UL is much more flexible than whole life it can also provide permanent protection at a lower cost, but it depends on how it is structured. UL can also be designed to have an increasing death benefit for increasing coverage or increasing cash values for those buyer’s seeking life insurance protection and future savings!
Guaranteed Universal Life (GUL) is sort of like the combination of “Term and Perm” combined. Consumers can enjoy the guarantees of permanent life insurance coverage, but with lower costs than whole life insurance.
Similar to Term insurance, the length of the guarantee period is determined by the agent and customer at the time of purchase. Typically, the longer the guarantee period the higher the cost. However, many GUL products offer the buyer the ability to lock-in a guarantee to Age 100 or beyond without paying as much as whole life or other UL products. The downside with GUL is the cash values are usually much lower than traditional UL and Whole Life.
Living Benefits and/or Return of Premium are also two popular options agents use with these products. They may be built right into the product, while some are optional riders.
If you want to learn more or need help supporting your Term, UL or GUL business, then contact us today! We are eager to assist you or your staff.
Examples of carriers that Life Professionals represents for this market include American National (ANICO), Cincinnati Life, Foresters, Lumico, Mutual of Omaha, National Life/LSW, North American Company, Protective and Transamerica.