Universal life insurance is a hybrid insurance product that combines the protection of a conventional term insurance policy with the cash value accumulation feature of a whole life policy. It's like buying a permanent or lifelong term life policy and investing the difference in fixed income securities (like Treasury Bills, Bonds, or CDs). Unlike traditional whole life policies, universal life insurance divides death benefit and cash value accumulation into separate components. That allows the universal life insurance policy to be flexible, in that you may pay minimum premiums as long as policy expenses and the cost of insurance coverage are met. The amount of life insurance coverage can be changed, and the cash value growth will depend on the amount of premium you pay.

There are four kinds of universal life policies:

1. Traditional or Non-Guaranteed Universal Life

Universal life insurance was developed from whole life insurance and is similar to whole life insurance in certain ways. However, there are a few differences. Universal life insurance is considered an "unbundled" product, which means that mortality expenses, investment performance, and other expenses are factored in to calculate premium rates and cash values. This offers flexibility in making your premium payments, but it also works against you as most life insurance agents sell this policy at the allowable minimum premium only, rather than the insurance companies’ guideline premium. Because traditional universal life is a non-guaranteed product, it can end up costing you fortune (in the form of not having life insurance when you need it most, as well as income tax consequences of cancelling your policy, such as phantom income tax) if your policy is dropped (lapsed or cancelled) because of not having sufficient cash value or lack of further higher premiums. This is a very tricky and delicate policy, and in most cases it ends up lapsing and costing you a lot of money. If you own a traditional or non-guaranteed universal plan, please call (866) 972-3262 now to explore your options for converting to a guaranteed plan or complete an instant universal life insurance quote request instant universal life insurance quote request to get a free review of your current policy now.

2. Guaranteed Universal Life

This is pretty much like traditional or non-guaranteed universal life except your premium is guaranteed never to increase, and as long as that guaranteed premium is paid on time, your death benefit will always be paid. Guaranteed universal life insurance is a fairly recent invention, and it is popular, because it functions as your entire lifelong term policy or term policy without expiration and with fixed premiums. This is a great universal life program for anybody who is 50-plus years old and looking for life insurance for the rest of life with fixed premiums. This policy can be used for estate tax liquidity, final expenses, a legacy for the next generation, or any other permanent life insurance need. Please complete an instant universal life insurance quote request now.

3. Indexed Universal Life

Think of this as non-guaranteed universal life with an option to tie your return to a major stock market index like the S&P 500. Interest crediting goes up and down in lockstep with the index. Indexed or equity indexed universal life policies have similar drawbacks to non-guaranteed universal life: very high expenses and the risk that the policy will lapse when you need it most. Please complete an instant universal life insurance quote request to get a free review of your current policy now.

4. Variable Universal Life

Variable universal life insurance is very similar to non-guaranteed and indexed universal life. With variable universal life (VUL), you can invest in the stock market directly rather than just a stock market index. It’s called separate accounts. You can invest in a variety of mutual funds, and the performance of a VUL policy will depend on the performance of these mutual funds. The VUL policy has all the drawbacks of indexed and non-guaranteed universal life insurance policies. You can learn more at If You have a Variable Universal Life Insurance Policy.....You Must Read This! . If you own either Non-Guaranteed Universal, Indexed (or Equity Indexed) Universal Life, or Variable Universal Life (VUL) insurance, you should inspect your policy documents and consult with a life insurance specialist at BeamaLife by calling at (866) 972-3262 now. Please complete an instant universal life insurance quote request to get a free review of your current policy now.