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Life Insurance Ideas to Make or Save Your Clients Money


IDEA: Guaranteed Estate Planning Life Insurance with Premiums Reduced 20-30%
–Universal Life Insurance with No Lapse Guarantees

Are your clients with estate planning life insurance interested in the cash value of their estate planning insurance? Or, have they purchased this life insurance strictly for the tax free death benefit as a part of their overall estate plan?

A New Life Insurance Product

If your clients have purchased estate planning life insurance for the death benefit, or are considering new estate planning life insurance, there is a new life insurance product to meet their death benefit needs at a lower premium cost. It is referred to as universal life insurance with no lapse guarantees. This universal life insurance can be designed to guarantee a death benefit to age 100 and beyond with a guaranteed premium. This new policy design is an improvement over many existing universal life insurance policies that are not guaranteed, may be underfunded, and are at risk to lapse before the insured’s death.

The Advantages

We find that many estate planning clients like the predictability and certainty of guaranteed life insurance policies as compared to the unpredictability and uncertainty that lower investment returns have caused in many existing estate planning life insurance policies.

Furthermore, it has been our experience that premiums for universal life insurance with no lapse guarantees are 20-30% less than premiums for maximum blended (lowest cost) whole life insurance. Whole life insurance will usually generate much more cash value, which may or may not be of value to your client. Universal life insurance with no lapse guarantees may have no cash value at older ages, even though the death benefit is guaranteed. Consequently, we encourage our clients to think of this life insurance as “term insurance until death.” Guaranteed premiums can be paid as a single premium, over a period of years, or every year to age 100. This guaranteed policy can be purchased on either a single life or joint life basis.

Who is the ideal Candidate for Universal Life Insurance with No Lapse Guarantees

Universal life insurance with no lapse guarantees works best for insureds age 55 or older. We have seen it work well for clients as old as age 85 who are in good health. This guaranteed low premium policy works best for clients who are in reasonably good health.