In an earlier post, we went over the two best known types of life insurance: term life and whole life. The briefest of brief recaps will remind us that term life insurance is a temporary policy while whole life is a more permanent solution.
That, obviously, is a gross oversimplification, but you can get the full treatment at our original Georgia life insurance article.
Now we need to talk about a third, and more complex, type of Georgia life insurance: universal life.
The key thing to keep in mind when talking with a Georgia life insurance agent about universal life insurance is this: make absolutely certain that the policy is guaranteed. This is because things aren’t as cut and dry with a UL (universal life) policy as they are with a WL (whole life) policy.
To put it as basically as possible: with a whole life policy, as long as every premium is paid the death benefit of that policy is guaranteed to pay out when the insured passes away. With a universal life policy, on the other hand, the policy will “lapse” (meaning your death benefit will vanish) if the premiums and cash value aren’t enough to cover what’s known as the COI, or Cost Of Insurance. For that reason, it’s vital to make sure you’re getting a guaranteed UL. With a guaranteed policy, also called a no-lapse policy, it’s written into your contract that if you make certain premium payments that the policy will be guaranteed not to lapse until a certain age. Generally, that age is 121, meaning you’d have to be very old indeed to outlive your policy.
When it comes to Georgia life insurance, you’ll find that UL policies are less expensive by far than WL policies. This makes a UL policy an attractive choice to a Georgia life insurance shopper, but again, you must be aware that without a guarantee written into the policy that your premium payments may not be enough to sustain your coverage in the future.
So which Georgia life insurance shoppers should be looking for a universal life policy? If you’re looking to get longer lasting protection than term life insurance can provide for not much more in monthly premiums, then a universal life policy might be right for you. Georgia life insurance shoppers should also have their eye on a UL policy if they’re looking for something that will build a cash value, but don’t want to pay the super high premiums of a traditional whole life policy.
As you can see, UL policies can provide great advantages to Georgia life insurance shoppers. However, there are a few pitfalls that you need to look out for, which is why I firmly believe you should work with an agent to figure out just what Georgia life insurance product is right for you. Now that you’ve started learning, why not set up your no-cost, no-obligation conversation with your personal Georgia life insurance agent today? Getting started is as easy as requesting your free Georgia life insurance quote.