Universal Life Insurance

Universal Life Insurance: 

• Pays a death benefit.

• A form of permanent insurance.
  Coverage can last for your lifetime.

• Cash value component that is separate from the death benefit.

• Flexible premium payments.

• More affordable than whole life insurance.

• Illustration Example

Living Benefits Riders

• Allows the insured to use some of the death benefits before death.

Terminal illness
Many insurance providers include at no extra cost.
Also called accelerated death benefits, this rider can help provide funds if you receive a terminal diagnosis that shortens your life expectancy to two years or less.

Critical illness
May include an additional fee.
This can provide funds to help pay medical expenses for certain qualifying illnesses that have high medical costs and shortened life expectancy.

Chronic illness
May include an additional fee.
This is like a critical illness rider but applies if you are diagnosed with a chronic illness that prevents you from being able to complete at least two of six determined "activities of daily living" (ADLs). These ADLs include eating, bathing, using the bathroom, getting dressed, transferring, and continence.

• Living Benefits example details.

• Not all term policies include living benefits.

Additional Common Riders

• Conversion or Guaranteed Insurability Rider
  Allows policyholders to "convert" a term life insurance policy to a permanent policy without having to take a medical exam or go through any underwriting.

• Accidental Death Rider
  Pays additional death benefit if insured dies as the result of an accident.

• Waiver of Premium Rider
  Future premiums are waived if the insured becomes permanently disabled. 

• Child Term Rider
  Provides death benefit in case a child dies before a specified age.
  The coverage is convertible once the child reaches maturity.