Life Insurance Types Term vs. Permanent Universal

No Lapse Guaranteed Benefit Universal Life Insurance

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Universal life insurance comes with an inherent hazard: lapse.  No-lapse guaranteed benefit universal life insurance dodges this danger and is actually more affordable.

The Hazard of Ordinary Universal Life Insurance

With ordinary universal life insurance, cash value is the core of your policy.  Your premiums go straight into your cash value, and you pay whatever you please, whenever you please.  The insurance company takes its fees from your cash value instead of directly from your premiums.  If your policy ever exhausts its cash value, it lapses.  That is, the policy terminates.

The difficulty is that you cannot predict with certainty how much cash value you will have at any given time.  Although the insurance company's fees are due at regular intervals, they are not regular in amount; they are calculated based on the amount of cash value you have in store.  Your cash value is subject to an interest rate that can change at any moment.  (If your policy is variable, you may even experience a negative rate of interest.)

Even if you pay premiums on a fixed schedule, your cash value could bottom out and your policy lapse.  Yes, you could purchase a new universal policy at that point, but you would face higher rates because of your age, and you might fall into a more expensive rate class because of declining health.

No-lapse Guarantee

No-lapse guaranteed benefit universal life insurance (NLG universal life insurance) behaves like a hybrid of whole and universal life insurance but is far safer and cheaper.  It removes cash value from the policy, and in its place, you get a fixed payment schedule, just like term or whole life insurance offers.  So long as you make the required payments, your policy will not lapse.

The sacrifice is that without cash value, your policy no longer has equity.  You cannot cash it in if you ever decide it isn't worth waiting anymore for a death benefit.  Some customers would see this as a selling point, however.  Without a cash value component, NLG universal life insurance is less expensive.  It provides permanent life insurance coverage and nothing else.

Call us now to buy or to get quotes on NLG universal life insurance from the top insurance companies nationwide.

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