By Mike Peterson, CIC

Life Quote

  Life Quote

Since the early 1980's I've seen a complete turn around in the life industry.   The early 80's saw the introduction of a variable interest rate product most commonly known as Universal Life.  It had features of Whole Life and Term Life combined while offering a higher interest rate than traditional whole life. I recall some products offering double digit interest rates!    Then the interest rates began to fall and the UL products did not perform well.  What followed was a shift of buyers preference toward Term and Whole Life.

The industry took notice and brought out new products.  You can still purchase a Universal Life policy that is interest sensitive.  We refer to this as the UL3 which is a asset growth product.  More risk is associated with the UL3 being it is a variable interest rate product.

On the more conservative side we offer the UL4 product which incorporates many of positive attributes of the old whole life policy.   We can structure a policy with a guaranteed death benefit.  This is also referred to as a 'final expense' product.

You may need a combination of products to protect you properly.  For example - when your children are young you may opt for more coverage utilizing TERM Insurance. 

You could also have a UL3 product that typically offers a guaranteed interest rate.  Caution - I do NOT like life policies that assume premium payments until Age 121.  Consider a plan that has a shorter premium payment period.

A Final Expense policy such as a UL4 is a great product that can be paid up before you retire.  For example - consider a 20 Pay UL4 policy for guaranteed death benefits with premiums that stop at a designated age.  

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Our Agency operates in the states of Indiana, Illinois & Michigan. Not all of our products and services are offered by Erie Insurance. 

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