Universal Life Insurance

A Universal Life Insurance policy differs from a Whole Life policy by separating the policy into 3 components:

  1. Protection
  2. Expense
  3. Cash Value

The cost of protection (death benefit) and policy expenses are deducted from the premium. The remainder of the premium is allocated to the cash value element of the policy.

By dividing the policy into these three components, a Universal Life policy has a great amount of flexibility. This flexibility allows the policy owner to make modifications to the policy death benefit or premium (within certain policy guidelines) as their needs and circumstances change over time.

Advantages of Universal Life Insurance

  1. The Policy-owner has a flexible, versatile tool to accommodate changing business, family and financial needs.
  2. By offering fewer guarantees, the cost of Universal Life Insurance is lower than Whole Life Insurance.
  3. In numerous situations, the combination of relatively low insurance costs, a competitive interest rate paid by the Insurance company on the "cash value" element of the policy, and tax benefits makes Universal Life Insurance a viable alternative to more conventional investment vehicles.
  4. Future premiums, based on past premiums and the interest rate earned by the policy, may be increased, decreased, or even skipped, without causing the policy to lapse.
  5. Accumulated cash values may be accessed through partial surrenders, withdrawals or non-taxed loans.*
  6. Cash Value withdrawals, if structured properly, can be free from Federal Income tax.
  7. Cash Value grows inside of the policy on a tax-deferred basis.

Allow The Guard Group to work with you to determine your Life Insurance needs. See if the flexibility of Universal Life fits in your Life Insurance Plan.

REQUEST A LIFE INSURANCE QUOTE

Click above to request an accurate, no obligation, Life Insurance quote from The Guard Group.

* Loans and withdrawals will decrease the policies cash value and death benefit. Loans and withdrawals from policies classified as "modified endowment contracts" are subject to current income tax and, if the policyholder is under age 59 _, an additional 10% penalty tax.

Securities and Investment Advisory Services offered through Allegheny Investments, Ltd., Member NASD, SIPC, 3000 McKnight East Drive, Pittsburgh, PA 15237 (412) 367-3880. Neil Merrell, Allegheny Investments Registered Representative. Allegheny Investments, Ltd. is not an affilitate of The Guard Group.

 
 
 
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