Permanent life insurance for women is a type of life insurance where the policy is for the ENTIRE life of the insured (The one who’s life is being insured), and never expires. Universal Life and Whole Life are two different types of permanent life insurance. Both universal and whole life build a cash value within the policy. They are also more costly in premium compared to a term life policy.
Universal Life (UL) comes in all different forms. It can be Guaranteed Universal Life (GUL) to a Variable Universal Life Policy (VUL) or Index Universal Life (IUL).
Guaranteed Universal Life For Women (GUL)
A GUL is a very conservative form of universal life insurance, and the most affordable permanent life insurance for women. It has a guaranteed interest rate on which the cash value will grow. Currently, the average guaranteed interest rate on a GUL ranges from 2-3%. It tends to build a little cash until about midway thru the guaranteed period and then the cash value starts to die out. A GUL policy is not for you if you want to build cash. There is virtually no risk in a GUL policy, and we highly recommend it to our clients that need something in place longer than term insurance. We often refer to GUL as a “Permanent Term Policy” or, “Dial a Term Life Insurance”. Once you are approved, you can commonly lock in a premium rate up to age 90, 95, 100, 105, 111, or 121. Most clients will do the GUL to age 100 option. People are living longer now a days due to advances in medicine and really putting thought into securing a more permanent form of life insurance. Guaranteed Universal Life gives them that long term option and still fits into the budget. It is by far the most conservative form of universal life insurance. At InsuretheQueen we sell almost as much GUL as we do Term.
Other Types of Universal Life
Variable Universal Life (VUL) is a lot riskier, but has a better potential for cash value growth. This type of Universal Life Policy allows the cash value to be directed to a number of individual accounts that act like mutual funds and can be invested in stocks or bonds. A securities license is required to sell this type of life insurance. We do not specialize in this form of Universal Life. However, we can gladly put you in touch with agents that do.
Index Universal Life (IUL) is another risky form of universal life that has the interest on the cash value linked to the positive movement of an index, such as the S&P 500, Russell 2000, or the Dow Jones. Unlike VUL, the cash value of an IUL generally has principal protection. Again, we do not specialize in this form of universal life, but will gladly put you in touch with agents that do.
A Glimpse At Universal Life Riders
The Basics of Whole Life Insurance For Women
Whole life is also a form of permanent life insurance. It lasts a life time and grows a cash value within the policy. It is by far the best life insurance you can buy! It does however come at a price. It would be a perfect world if we could all afford whole life with substantial coverage amounts. The reality is that the majority of individuals just can’t justify fitting a whole life premium in their budget.
The norm is to hear that a baby or young child has a small whole life policy purchased by a parent or grandparent. The premise behind purchasing a small whole life policy for a baby or child is to use the case value as a savings plan. Individuals that are age 50 and above use whole life to cover burial and funeral costs. These policies usually range from $5,000 to $50,000 in coverage and are often referred to as final expense insurance.
A variety of riders can be added to whole life insurance. And there are also built in benefits. A paid up death benefit is a great feature that is often on a whole life policy. In a nutshell, this gives you the ability to walk away from the policy after so many years and have whole life insurance paid in full for the rest of your life. That means never having to pay premiums again!
There are also simplified and guaranteed issue whole life insurance policies.
A simplified issue policy means that this type of life insurance is NOT fully underwritten. There are still questions that need to be answered, but the processing of the application to get an approval has been streamlined. For instance, the insurance carrier may ask you several health questions to determine if you will receive a level, modified or graded insurance policy (I will define those terms below). They will not require a medial exam, or review medical records etc. They may run a motor vehicle report and a prescription check and an MIB report. An MIB report is an underwriting tool that provides an exchange of information between insurance carriers. It will tell an underwriter about any possible errors, omissions or past misrepresentations on any other application for insurance. In a nutshell, simplified just means an shorter underwriting timeline and a quicker approval answer for you!
Level: Best premium pricing and no limits on how much death benefit is paid out during the first couple years of the policy.
Modified: Next best premium pricing. Usually limit on death benefit paid out in first couple years due to non-accidental deaths. For example, a percentage of the death benefit may be paid out instead of the entire amount.
Graded: Last in terms of best premium pricing. Limits on death benefit paid out in first couple years due to non-accidental deaths. For example, return of premium paid into the policy plus 5 to 10% is paid out.
Guaranteed issue means your acceptance is just that….GUARANTEED! These policies tend to issue from ages of 45-85 (Depending on the insurance carrier). These policies usually build a cash value and never increase with age. Individuals who have been declined for traditionally life insurance (Fully underwritten) usually turn to Guaranteed Issue when there is no other option for coverage. These types of policies also tend to be GRADED (Limitations in death benefit payout during the first couple years). For example, a guaranteed issue policy I sell provides only return of premium plus 10 percent during the first two policy years for a NON-Accidental death. So if you have a policy for $25,000 at $100 a month and pass away 3 months in due to a heart attack, then your beneficiary only receives $200 plus 10%. However, if you pass away from a heart attack or any other non-accidental death on the first day of the 3rd year or beyond, then the policy will pay out the full death benefit of $25,000. However, your beneficiary will receive the full $25,000 anytime in the policy period if you pass away from an ACCIDENTAL death.
For more information about permanent life insurance for women or to get a no obligation, no hassle quote…please feel free to give us a call at (619) 933-0736. We are happy to assist.
*Written by Ellen Edwards. InsureTheQueen.com and its representatives do not give medical, legal, or tax advice. Please consult your own physician, legal or tax adviser.
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