Universal Life

This kind of life insurance has been popular since the early 1980’s. Although it has gone through many changes, mostly updates to be current with economic circumstances, its usefulness is great when done properly. Let me say here in my opinion: “Life insurance is not an investment”, “Life insurance is not a savings plan” and finally “Life insurance is just that, insurance to pay a benefit when one dies”.

Hand writes the personal information on the health insurance claim form

Having that off my chest now let me explain my position on these statements. Some companies and their agents like to present life insurance as an investment. I am not sure why it is done this way but in my experience it seems to me that unless one dies before their normal life expectancy, the cash values which accumulate are not really such a good deal for the client.


Universal Life insurance policies have been vastly improved by providing what is called a guaranteed death benefit rider. With this type of rider in place the policy is guaranteed never to lapse due to insufficient cash values as long as the scheduled premiums are paid according to the schedule set up when the policy is issued. What this means is this, with this kind of rider as long as one pays the premium and does not take any cash out of the policy, the insurance company will pay the death claim when the death occurs. This type of rider makes sure a death benefit will be available when the time comes.