Guaranteed Universal Life Insurance and Estate Planning
Not sure if guaranteed universal life insurance fits for you? Contact Siegel Law Group today, and we will answer all of your questions about estate planning.
In recent decades, guaranteed universal life insurance has become an integral part of estate planning. The guaranteed payout, length, and price has made it a more attractive option than other types of life insurance. Using years of experience serving Boca Raton and South Florida, Siegel Law Group has put together this guide of what you need to know about guaranteed universal life insurance.
What Is Guaranteed Universal Life Insurance
Guaranteed universal life insurance (GUL) differs from other insurance because the policyholder selects the age that policy covers until instead of the length of coverage. For example, with GUL, you can choose the same guaranteed coverage from 80, 90, and 100 years old. In contrast, term life usually has a maximum length of 30 years before the policyholder must renew, but the policy can become more expensive as you age. With people living longer, the coverage of term life can fall well short of the end of a person’s life.
Benefits of Guaranteed Universal Life Insurance
GUL gives the policyholder a guaranteed amount of coverage that is often higher than whole life. Also, once the policy is agreed upon, the rates don’t change. Since GUL insurance can be selected at any age, it really has the potential to cover someone until the end of their life. Some people choose this policy as part of their estate planning because of the guarantee; it acts almost like a low-yield investment. The guaranteed amount can be used to take care of your final expenses, provide for loved ones, and in most cases, leave a tax-free inheritance.
Review Your Policy Periodically
Life insurance can be one of those “set and forget” items on our to-do list. However, Siegel Law Group recommends reviewing your policy periodically for several reasons:
First, check the policy for errors. In addition to the policy documents, each policy should include a policy illustration. If your policy has a cash value, ask for an in-force ledger which will give you the policy’s current and projected cash value. Make sure that these documents match what you signed up for.
Second, check the financial health of your insurance company. While there are safeguards in place to pay claims in the case of bankruptcy, a company’s financial health could affect your quality of service and peace of mind. Websites like Standards and Poor’s or Moody’s provide credit ratings for companies which could indicate your insurer’s financial strength.
Third, shop around for lower premiums. Like all insurance, it is a good idea to see if you can pay less money when possible even though life insurance premiums tend to get higher as you age.
Is Guaranteed Universal Life Right For You?
Often times, estate planning can be overwhelming. The Siegel Law Group can make this process stress-free and guide you to a personalized plan to take care of your family once you’re gone. Contact Siegel Law Group today for a free consultation or call at (561) 955-8515.