In my 28 years of industry experience, I have witnessed decades of a continually evolving life insurance products.
In the 80’s and early 90’s, the Universal Life concept became a consumer demanded change. Customers wanted chances to obtain a better return than the current permanent plans were offering. New plans started with names like flexible premium, adjustable, universal and more.
This opened the door to the “Variable” Universal Life, which again was a consumers desired change. The industry recognized that consumers wanted the option to have a better return on their money. The V allowed for consumer’s cash value to participate in the market. Fast forward to the “Indexed” Universal Life. Now we see a product that allows for the upside potential growth consumers may enjoy, but also the downside protection we all can appreciate.
Even term life has continued to evolve. The industry has constructed fixed terms such as annual premium locks and 10 to 30-year level payments. Now there are even longer locks, better conversion privileges, lower costing plans and much more. In fact, today there is a plan offered, what I like to call a “hybrid” or “term for life” plan. In car terms, it is built on the chassis of a Universal Life plan. It is by definition a universal life permanent plan and it does build cash values. However, it can be treated as a “term for life” as I mentioned. It is called a GUL.
But that’s not all. The new, “Guaranteed” Universal Life, now gives you an option to get all or a large portion of your money back if you live. What a great concept. No risk anymore… with options! Check out some of the recent changes below.
These are more than enough reasons to review your or your clients life insurance plans TODAY!
OLD PLANS
Lasted to age 95-100
NEW PLANS
Last until age 121
Wouldn’t it be tragic to outlive your life insurance when you needed it the most?
No accelerated benefits
Chronic, critical and terminal illness riders
What if your life policy could provide a windfall of cash in the event of a major or terminal illness?
Has stock market volatility
Upside returns with downside protection
What if you could participate in market type gains, yet protect yourself when market declines?
Traditional term is like renting
Option to get a return of premiums
The new GUL gives you a choice of continuing coverage, getting a refund of premiums paid or having a paid-up policy.
A dear friend of mine, Mr. Fruend, has a wonderful way of putting this entire message into one question,
“Do you have the OLD or NEW kind of life insurance plan?”
