Are you the only source of income in your family? Do you have an idea about what your family will do in case any mishap happens to you? Well! If not, then it’s time to think about it now. Smart universal life insurance could save you and your loved ones in difficult situations.
This insurance plan comes with considerable flexibility to adjust the coverage according to the policyholder’s needs change. It is specifically designed to meet the needs of the insured throughout the life stages of the insured. So it can be an affordable choice for your overall financial plan.
In this blog post, we will delve into the details of smart universal life insurance plans. We will also explore different other types of universal life insurance along with smart and how to get their quotes. Let’s get started!
What is a Smart Universal Life Insurance Plan?
A smart universal life insurance policy is a type of universal insurance that is designed in an all-in-one life insurance solution. It offers you flexibility, affordable protection, as well as an opportunity to save for the future of whom you care about.
It provides the security of guaranteed coverage for the first 10 years as long as the premiums are paid. Being a product of universal life insurance, smart life insurance comes with a cash value component that has the potential to build value aside from the death benefit. This will grow at a guaranteed minimum interest rate of 3% per year. In addition, the insured can also access the accumulated cash during his life for particular needs like buying a house or paying down a mortgage.
How does smart universal insurance work?
Here’s how this policy works:
The premiums the insured person pays go into his account value.
A part of this account is used to cover the insurance cost and any other monthly charges including maintaining records and others.
However, the other portion goes to the cash value component. It will grow depending on the interest accompanied by the certificate’s account value.
Generally, cash value accumulates on a tax-free basis until the policyholder withdraws it as cash. He can also use this amount to pay the costs of his insurance policy.
What is the minimum age limit for smart universal life insurance?
Coverage for smart universal life insurance is available for the ages 0 to 85 with the initial coverage amount of $25,000. However, it may be as low as $10,000 for kids and juveniles. Smart UL is underwritten on a non-medical basis (for 75 or plus), which means insurability based on answers to medical and other application queries along with underwriting searches and reviews. Furthermore, the policy is available on an accelerated or medically underwritten basis.
What does smart universal life offer?
This type of universal life insurance plan offers you:
- Customizable lifetime protection to meet the needs of the middle market.
- Flexible premium payment with minimum and maximum amounts.
- Two death benefit options.
- Optional riders for added flexibility
- Tax-free cash value accumulation
Does smart UL come with two death benefit options?
Yes, you heard it right! There are 2 death benefit options available with smart universal life insurance. The first one is the Level death benefit and the other is the Increasing death benefit. In level death benefit, the death benefit amount is equal to the payout at any given time. However, the amount at risk can be calculated by taking the face amount and subtracting the account value.
On the other hand, the death benefit of increasing death benefit is equal to the face amount as well as account value at any given time. The amount at risk will be the face amount at any given time of the plan.