A universal life insurance policy is a good choice if you are looking for life insurance that will increase in value depending on current stock market performance or interest rates. A universal life (UL), which provides lifetime protection, cash value, and the ability to adjust or eliminate premiums altogether, can be purchased. You will need to contact an agent in order to get a quote for universal life insurance. Quotes are not generally available online.
If you are looking for universal life insurance, all of the companies listed above are worth considering. Your options will partly depend on the type of policy that you choose–UL, IUL, or VUL. Nationwide and Penn Mutual offers each of these options and are great places to start. Northwestern Mutual doesn’t offer IUL coverage at the moment, but it does offer traditional and VUL policies. It also has the strongest financial position among all the companies on this list (and the most in the market). J.D. also ranked it very high for customer satisfaction. Power. Compare the IUL offerings of Mutual of Omaha to those of Nationwide or Penn Mutual.
FAQ
What is Universal Life Insurance?
Universal Life Insurance (UL), a type of permanent insurance with flexible premiums and an adjustable death benefit, is a type. You can also borrow or withdraw cash value while you are still alive. There are many types of UL, including traditional universal, indexed universal, and variable universal.
Are Universal Life Insurance and Whole Life Insurance the same thing?
Although they share many similarities, whole-life insurance and universal life insurance have some differences. Both policies are cash-generating and designed to provide lifetime coverage. Whole life insurance however has fixed premiums as well as a fixed death benefit. Universal life insurance offers flexible premiums and an adjustable death benefit. It also has a cash value that can be affected by interest rates. A UL policy can be canceled if interest rates do not perform as expected.
A whole-life policy might be more appropriate for those looking for guaranteed protection, even though it is more expensive.
What is the difference between Universal Life and Term Life Insurance?
Both term insurance and universal life insurance serve different purposes. Term life insurance provides temporary protection with coverage that can last from 10 to 40 year. The beneficiary will receive the death benefit if the policyholder dies during the term. The benefit ends if the policyholder dies before the end of the term. Term life policies offer level premiums and a guaranteed death benefit. They do not accumulate cash value.
Universal life insurance, unlike term life, provides lifetime protection and pays out when the policyholder dies. The policy offers flexible premiums and an adjustable death benefit. It also builds cash value. Universal life insurance is more expensive at a young age than term insurance. However, term premiums rise as you age.
What are the expected costs of universal life insurance?
Universal life insurance costs are different for each applicant. Your premium will be affected by the following factors:
- Age
- Health
- Tobacco use
- Limit on coverage
- Type of policy
Keep in mind that, aside from your personal characteristics, such as age or health, the type and price of your policy will also affect how much you pay. VUL policies, for example, are more expensive than traditional UL and IUL policies. This is because they include mutual funds that come with their own expenses. Don’t forget the surrender fee. Although it is not an upfront cost, the surrender charge is a penalty that you will pay if your policy is canceled early. The product and the insurer may vary, but surrender charges can last from a few years to twenty years.
Is Universal Life Insurance worth it?
Universal life insurance may be a good choice if you are looking for flexible insurance policies with lifetime coverage. People who need cash value can borrow or withdraw it tax-free and use it to pay for various expenses and can benefit from universal life insurance.
Many companies offer a no-lapse guarantee rider to protect your policy as you get older. This ensures that your policy will not expire as long as you pay a minimum premium amount. This is a way to get more protection from UL policies, similar to whole-life insurance. Whole life insurance is a better choice if you require permanent coverage with an unbreakable guarantee.
How we chose the best universal life insurance companies
To compile our list of best life insurance companies we created a comprehensive life insurance methodology. To find out what life insurance consumers want, we started by looking at third-party consumer studies like J.D. Power’s 2021 U.S. Life Insurance New Business Study. The 2021 Insurance Barometer Study.
We gathered over 50 data points about 91 life insurance companies to help us make these findings. This includes ratings for financial strength, customer satisfaction, and customer complaints as well as information on years in business, cost, and online tools.
We chose companies that had superior financial stability, low customer complaints, and a strong suite of products or resources during our review.
By comparing individual offerings among companies, we looked deeper into product details, such as maximum coverage amounts, maximum issue age, included riders, and how cash value is invested (for products that are permanent). This research was used to identify the top companies for various products and consumer groups.