NEW YORK – Nov 18, 2021 – (

iQuanti: Many people who want to take out universal life insurance are attracted by the possibility of building up a cash value with flexible payments and benefits. Add to that the fact that universal life insurance doesn’t expire and it might be worth a look. If you are interested in universal life insurance, here is a step-by-step guide on how to get the right policy for your needs.

What is Universal Life Insurance?

Universal life insurance is a type of permanent life insurance that is more flexible than life insurance. As with a fixed term policy, Universal Life offers beneficiaries a death benefit if the policyholder dies during the term of the policy. But as with life insurance, universal life insurance is life insurance that does not expire and that has the option of building a cash value. The present value component is slightly different depending on the type of universal life policy.

Types of universal life insurance

There are three types of universal life insurance:

  • Guaranteed Universal Lifetime (GUL): With a GUL policy, policyholders have the same death benefit and premium. GUL policies are usually the cheapest type of universal life insurance, as the policy often has little or no cash value. However, buyers should know that a GUL policy can be terminated with a single late or missed payment. Policyholders must therefore commit to making timely payments for life in order to avoid losing the premiums paid.
  • Variable Universal Life (VUL): With a VUL policy, the policyholder can choose how to invest the cash value of the policy. This can be a fixed income investment or the investment of funds on the stock exchange. Remember that a VUL policy is often complex and comes with high fees. You should therefore do your research before purchasing this type of life insurance. Also, keep in mind that this policy generally involves the risk of loss of present value and you should speak to a suitably licensed financial advisor before purchasing a variable policy.
  • Indexed Universal Life (IUF): As the name suggests, the cash value invested in an IUF policy can be linked to a stock market index such as the S&P 500. Usually, profits can only be a fraction of what you could make by investing money directly in the stock market. This is thanks to the participation rates and upper limits. Like a VUL guideline, IUF guidelines are usually complex. Hence, it is a good idea to compare options and do enough research to find the right policy for your needs.

This is how you get universal life insurance

The steps to take out universal life insurance are relatively simple:

1. Research insurance companies

The first step in finding the right universal life insurance policy is to research reputable insurers. When it comes to life insurance there are many options to choose from. But you can spot the good ones by looking at customer ratings, transparency with policy details, and long-term financial stability.

2. Review policy options

Once you’ve found some reputable insurers, you can take a look at the types of policies they offer. From the three options outlined above, you can find that a particular life insurance policy is better suited to your financial goals.

3. Get a quote

Many insurance companies require you to contact them directly for a universal life insurance quote. That’s because the underwriting process for perpetual life insurance is a little more complicated than term life insurance, which many companies can quote through an online tool.

4. Submit application

If you agree to the offer and the terms and conditions, the next step is to send your formal application.

5. Go through the verification process

Some insurance companies can contact you with additional questions or arrange for you to have a free health check-up in a convenient location such as your home or work. When you complete this process, you can get one step closer to approval.

6. Receive and review the final policy details

If the insurer decides to proceed with issuing universal life insurance, you will receive the documentation in physical or digital form. Make sure you read the fine print and contact the insurer if you have any questions or concerns about the contents of the policy.

7. Sign and pay rewards

Once you’re happy with the policy’s pricing and details, it’s time to sign on the dotted line. After taking out the policy, you then start paying the monthly or annual premiums according to the agreed conditions.

The bottom line

Universal life insurance tends to be one of the more complex life insurance policies available. And that means anyone considering this option should take the time to carefully consider insurers and policy options. In most cases, working with a financial professional is the best option before signing up for a policy that is difficult to understand on your own.