Universal Vs. Term, Why Would I?

[random.minnesota]

I'm looking at a basic life policy and am not necessarily looking to use it as an investment vehicle. I realized that open market term life was cheaper for me than the supplemental plan offered by my company. In comparing the different term life options, I came across a universal policy that had premiums below that of the term for the same period.

I've always thought that permanent insurance was higher cost and would not apply if just looking for basic accident coverage.

Why would I want to go with a term policy if a universal policy is the same annual premium? Thanks.

 

[jhuang]

What's the Death Benefit? Riders?

 

[random.minnesota]

It's the secure-T policy under Protective (protective.com). level-premium, 10 year, 900k, lapse protection, accelerated death benefit, optional riders available, but I'm not looking at them.

 

[WinoBlues]

It's the secure-T policy under Protective (protective.com). level-premium, 10 year, 900k, lapse protection, accelerated death benefit, optional riders available, but I'm not looking at them.

What you are looking at is a Universal term policy. One short and simple answer to your question is convertibility.

The rates you looked at have a very short expiration date. You need to do it now. Prices change January 1. The app needs to be there by Dec 31st and the policy needs to be underwritten and placed by February 28th.

Lee

PS.... did you quote $1,000,000? may be less per $1,000. cost.

 

[random.minnesota]

Thanks Lee! kind of dumb move on my part to not check the even benefit tier. $1M is not only less expensive per $1000, but is $3 less in total premium. Hate it when insurance does that, just like car going to higher coverage is cheaper...

 

[WinoBlues]

Thanks Lee! kind of dumb move on my part to not check the even benefit tier. $1M is not only less expensive per $1000, but is $3 less in total premium. Hate it when insurance does that, just like car going to higher coverage is cheaper...

Also, assuming you are not an agent, make sure they are going to take you at the class rating you are asking for. I use Protective a lot. I really like them but you may or may not fit for the class you are quoting yourself. With AG38 your window is somewhat limited.

If you are not an agent. Use one. Zero down side and many upsides. Especially since this is a ten year plan.

Lee