Universal Life Insurance

Carolina Insurance partners is your preferred Life Insurance Broker for universal life coverage in North and South Carolina

Universal Life Insurance

Losing a loved one is a profoundly emotional time that can easily be made worse if the decedent hasn’t planned ahead for their family’s financial future. Without the right life insurance coverage in place, your loved ones can be stuck footing a bill they can’t afford. From funeral expenses and property taxes to cost of living and education, there’s a lot that a universal life insurance policy can help cover in the event of your passing. At Carolina Insurance Partners, our team can help you plan ahead so the only thing your loved ones have to worry about after your passing is their emotional healing. Find the universal life insurance policy you need by contacting Carolina Insurance Partners today!

Types of Universal Life Insurance Policies

Everyone’s life is different, so it stands to reason that there should be a broad range of available life insurance products to satisfy each person’s individual needs. There are a number of different universal life insurance options available, each one offering their own unique benefits depending on your specific circumstance.

Traditional or Non-Guaranteed Universal Life Insurance

A non-guaranteed universal life insurance policy is one that offers a death benefit with an investment component attached to it. Considered an “unbundled” product, premiums and cash values for these policies are subject to change and are calculated based on mortality expenses, interest rates, and other expenses the policyholder may have. These policies are typically best when the market interest rates are much higher than the historical lows recorded in 2020.

No Lapse Guarantee Universal Life Insurance

No lapse guarantee universal life insurance policies are similar to non-guaranteed policies; however, the premium is guaranteed to never increase as long as it is paid on time. This premium guarantees that the policy remains active for a set number of years, regardless of actual policy performance. It also guarantees that coverage will continue even if the policy’s cash value drops to zero. It’s important to note, however, that once the no-lapse period ends, the policy could lapse unless a significantly higher premium is paid.

Indexed Universal Life Insurance

Indexed universal life insurance policies provide enhanced flexibility, allowing policyholders to vary their premiums and death benefits within set limits. The policy can build cash value, and the gains for which are tied to an index, such as the S&P 500, Nasdaq 100, or Russell 2000. Typically, these policies will guarantee that the interest rate on your policy never falls below zero, and the interest rate will usually be limited by the policy’s participation rate and cap.

Variable Universal Life Insurance

Variable universal life insurance policies also allow policyholders to vary their premiums and death benefits within set limits. However, this type of policy allows for more control over investment options. Your cash value can be invested in multiple “sub accounts,” which may include stocks, bonds, or money market accounts. With this type of policy, customers can select their investments and must actively monitor them in order to ensure they have supporting cash value. This is a great option for those who are investment savvy and have a firm understanding of the market.

If you’re not sure which universal life insurance policy is best for your situation, don’t hesitate to reach out to the knowledgeable team at Carolina Insurance Partners today!

How Does Universal Life Insurance Work?

Universal life insurance policies operate a little differently than other life insurance products. A portion of your monthly premium is applied to the policy’s “cash value,” which earns a small amount of interest depending on the specific type of policy in place. You can even use the built-up cash value to pay for part of your monthly premiums and enjoy reduced payments. After you die, the remaining cash value will go toward the death benefit for your designated beneficiary.
Like any other life insurance product, your beneficiary will need to file a claim with your carrier to receive their death benefit. Once their claim has been approved (typically within 30 days of filing), they may use the funds however they like, including for funeral expenses, property taxes, continuing education, cost of living, and many other expenses.

If you’re not sure which universal life insurance policy is best for your situation, don’t hesitate to reach out to the knowledgeable team at Carolina Insurance Partners today!

Benefits of Universal Life Insurance

One of the biggest advantages of a universal life insurance policy is the investment aspect: By investing a portion of your premium each month, the idea is that the policy will eventually pay for itself. Customers can pay for a certain number of years, watching their investments grow until they eventually are able to cover the cost of the premium altogether. However, this benefit is largely based on market performance, which — given recent instability — may not always turn out as expected.

Another main draw for universal life insurance policies is the ability to adjust the face value of your coverage without surrendering the policy. This is especially beneficial for those who experience changes to their financial circumstances or responsibilities as time passes. Additionally, policyholders are able to withdraw or borrow against their cash value. It’s important to note that these withdrawals cannot be repeated as it will reduce the cash value amount, leaving you very little when you need it most.

Why Consider Universal Life Insurance?

Despite market uncertainty, a universal life insurance policy can still be a great choice for younger individuals looking to secure their financial futures. Individuals in their 20s and 30s are typically better suited for such policies as they have plenty of time to watch their investments grow and change as market performance fluctuates. By taking advantage of lower rates now, these policyholders will have a financial advantage in the future.



Carolina Insurance Partners for Your Life Insurance Needs

Selecting the right universal life insurance policy isn’t as cut and dry as it might seem. When it’s time for you to start planning ahead, you need a knowledgeable team that can help you make the best decision for you and your loved one. Contact Carolina Insurance Partners to discuss our universal life insurance options and start planning a brighter financial future for your family today!

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