Finish Line Insurance Service’s Team has a passion for Universal Life Insurance. Unlike in the 70’s and 80’s when only Whole Life insurance was offered, today there are an enormous amount of new products and options designed to fulfill specific needs. We approach Universal life as an asset rather than an expense. This approach allows each specific benefit offered in the policy to take on value to you. We are excited to show you how your insurance policy can work and create positive value for you. Contact us today.
Why Universal Life?
First off, there are many different forms of Universal life and many different ways to structure it which gives Universal Life a very unique approach. It is not uncommon for an insurance company to offer upwards of half a dozen different Universal Life products within their product line. Here are some of the advantages to Universal life over Term Insurance:
- Universal Life can create tax free cash value that is accessible via loans or withdraws without any age 59 ½ restrictions.
- Universal life can offer you guaranteed life insurance until age 120, true permanent insurance.
- It is the only form of Life Insurance that has a flexible premium. Your payment can change at your discretion.
- There are new provisions that allow you to access the death benefit ( not the cash value ) while you are living. This is a true “Living Benefit”.
- Universal life can be used as a steady income stream to compliment retirement income.
- Lastly Universal life guarantees that you have options when life demands change of your insurance needs.
California law has recently implemented many new benefits to owning a Universal Life Insurance Policy. If you are single person or a family, and you feel that you should get something back from paying insurance premiums year after year, then contact us today regarding Universal Life Insurance and see what we can do for you. Click Here
Who Is Universal Life For?
Answer: All Ages
Finish Line Insurance Services works with Universal life products to satisfy the needs of many different family’s and businesses in our community. Here is a list of categories in which Finish Line Insurance Services has already set up Universal Life policies for our local community.
- Grand parents and parents looking to set up college funds for a child, who can later obtain ownership of that policy.
- Small Business owners looking to set up a retirement plan without having to make employee contributions
- Any family or person in need of insurance to last beyond a 30 year term policy.
- Any family or person who would like to see their money come back to them later in life.
- Elderly people in need of a guaranteed death benefit, who want to make sure the insurance is there when the need it.
We realize that people today have vastly different needs then in the past. Please call us to make sure the needs you have are being met properly and by a team that truly cares. In all walks of life you will find that client’s are serviced better by companies who have passion for what they do. Here at Finish Line we have that passion and we hope you see it in the service we offer you.
What Types of Universal Life are there?
- Equity Indexed Universal Life
- Essential Universal Life
Equity Indexed Universal Life is an insurance policy that offers interest linked to one or many stock market indices. With this type of program your funds are not directly invested into the stock market but can still take advantage of the upward movement of the stock market and be at less risk.
Here is how it works: As premiums are paid there is a portion used to pay for the cost of insurance and the remainder is allocated into a fixed account, index account, or a combination of the two. The fixed account is tied to the current interest rate environment and is therefore subject to change over time. Fortunately most insurance companies guarantee a fixed rate of return never to go below 3%. The index account is linked to the fluctuation of one or more of the given indices. Some companies work with one or two indices and some with many. The client is usually given the choice how they would like their investment to be allocated amongst these.
One of the advantages to an Equity Index approach is that you have the opportunity to earn interest on the upward movement of an index. On the contrary one of the disadvantages to an Equity Index approach is that there is a cap as to how much upward market movement you can profit from.
Most index accounts have a Cap rate of no higher than 13-14%. In other words if you are in an index fund, when the market is up and your neighbor is pulling in 20% you might cap out at 13.5%. But when the market is down and your neighbor can’t pay his mortgage, you can sit there having not lost a dime knowing you have a guaranteed minimum interest rate and no risk to your principal investment.
In trying times like these it is nice to have flexibility in your options. An Equity Index Life Insurance plan can give you the piece of mind that your principal is secure, while still being able to benefit from a favorable market swing.
Essential Universal Life
Sometimes folks are not interested in the cash value of a life insurance policy but the death benefit alone is what they would like to see put in place. There are a few life insurance companies that offer Universal Life programs structured in such a way that the premiums as well as the cash values are kept to an absolute minimum in order to maximize the death benefit alone. The policies primary purpose is to effectively ensure the death benefit stays in force until age 120 at the lowest premium possible.
Think of the Essential Universal Life plan as a term insurance policy that lasts forever. The policy still has all the advantages to permanent insurance like, living needs benefits, a guarantee of level premium and death benefit options, but the premiums can be hundreds of dollars less than a whole life policy of equal value. This version of Universal Life is becoming more and more popular amongst the senior market today in order to meet the life insurance needs of clients while staying aware of a limited budget concerns.
