Recently a new form of life insurance has hit the market.  It is called Universal Term.  These plans are essentially substitutes for convertible term life insurance policies but with some added flexibility.  Dave Ramsey recently reviewed these plans and declared them as an acceptable alternative to term life for many people.

Universal life insurance is technically a type of cash-value life insurance.  However, the plans are designed to have very low cash values which allow the premiums to be competitive with term life.  These plans are not designed to accumulate future retirement benefits or savings.  Because there is a small cash value, these plans are slightly more flexible than convertible term life policies, which is the most equivelant product.  The premiums are designed to keep the policy in force for a pre-determined period of time, like term life.  If you near the end of the period of time the plan was designed for, you may extend the coverage with additional premium.  The sooner you adjust the premium to buy extra time on the term, the lower your premium will be. 

If you want or need life insurance into your golden years, for example as spousal protection with a pension or to leave an inheritance to grandchildren, Universal Term might be right for you.  Existing whole life can often be exchanged tax free into Universal Term in order to lower your premium or add more death benefit at no additional cost.  Contact us to discuss how you can use this excellent tool.