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Universal Life Ins. Policy?

Does anyone have a universal life insurance policy? By Aviva? DH and I are trying to decide if this is a good way to go in order to save on taxes on annuities, IRAs, CDs, etc.

I am NOT selling anything.

 
ChezBelle

Asked by ChezBelle at 1:10 AM on Dec. 17, 2010 in Money & Work

Level 19 (6,604 Credits)
This question is closed.
Answers (6)
  • ok a UL product is a mix between a whole life policy and a term life policy. It's cheaper in the sense of Term and generally guaranteed until age 105. It is NOT a good place to invest your money. NEVER invest your money in a life policy. That said, here's the difference. Whole life policies are permanent insurance, they are there until you use them. They ARE more expensive and if you are older 50-55+, it is definitely the way to go. Here's why: say you are 50 now and you go with a Term policy, (they are temporary) that is ehhh, 20 years. Well then when your 70, you can 1 either have it renewed under your 'guaranteed renew' clause, BUT your prices WILL increase, but you are guaranteed to be able to renew it. They will do a new exam and take in all NEW health problems at age 70, and this is what your premium is based on. So say you are now 70, that alone makes your premium go up, say you now have a major health problem... (cont
    mama2three717

    Answer by mama2three717 at 1:31 AM on Dec. 22, 2010

  • term is the only way, everything else is mad commissions for your gent, no real savings for you.
    IraqiVetWife

    Answer by IraqiVetWife at 2:00 AM on Dec. 17, 2010

  • that's another premium increase.Now with Whole Life, because it's permanent, your premium will ALWAYS remain level, i.e the same at age 70 as it was at age 50. So say you want to change at age 70 from your Term to Whole life. Some term will convert over to a Whole life policy, but this can be a bit iffy to the type of whole life it does change over to. Or you can just get a whole life policy based on age 70, even if you're in perfect health at age 70, it will still be upwards $300-$400 per month, based on age alone (this also depending on your face value) I hope this makes sense for you. If you have any questions feel free to contact me. I am an insurance agent, however I am not licensed in your state, so no worries about me trying to sell you anything! lol
    mama2three717

    Answer by mama2three717 at 1:35 AM on Dec. 22, 2010

  • also to add to the first respondent, there is an option clients can choose to get both the face value and the cash value of a UL or WL policy. just a quick FYI
    mama2three717

    Answer by mama2three717 at 1:36 AM on Dec. 22, 2010

  • and to add again, if you are in the 50-55+ age bracket, unless you know you are going to independently wealthy by age 70, term is NOT the right option for you.
    mama2three717

    Answer by mama2three717 at 1:39 AM on Dec. 22, 2010

  • Nope- Guaranteed renewable Term life all the way baby.

    If you want to save on taxes, start with a Roth IRA, or a 401k. You know the average returns on universal life are horrible compared to what you get from other investments. That and if you die you get the face value of the policy, not the savings plus the value of the policy.

    It's like the Gerber whole life insurance/ "investment" for kids... Do your investing with an investment company, and buy your insurance from an insurance company. But don't mix the two together.
    Erica_Smerica

    Answer by Erica_Smerica at 1:44 AM on Dec. 17, 2010

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