Guarantee life insurance for the next generation

If you are a parent or grandparent you may not even think about your little one’s ability to purchase life insurance. But the fact remains that when they decide to purchase life insurance for themselves at a later date, they may not be eligible. Life insurance is written and priced based on health and age. With our nation’s health as a whole declining rapidly, the next generation’s ability to purchase affordable life insurance may be threatened. A great example of this would be diabetes. If you as a family member want to take the “what if” out of your little one’s ability to purchase life insurance in the future, you do have that right and option because you have insurable interest. When you do this for your loved one, it should be with a form of permanent insurance. Some options would be Whole Life (WL), Universal Life (UL), and Guaranteed Universal Life (GUL). WL is the most expensive up front but it does lock in a level premium for the remainder of the insured’s life. Universal life would be the least expensive of the three permanent options, but if market conditions change drastically after the policy is written, the planned premiums might not be enough to carry the death benefit for the insured’s entire life. The premiums with UL are adjustable and, if needed, more money in the future can be paid in to keep the policy alive. GUL is a very simple permanent option. It has a level premium and level death benefit for the life of the contract. This type of insurance is also guaranteed to stay inforce as long as the planned premiums are paid. Examples of guaranteed lengths are ages 95-126 depending on the company. With any one of these options, a crucial question to ask is, are there guaranteed future purchase options for the insured? This would allow the insured, regardless of health, to purchase… | Read More »