Site loading image


Selling universal life products

Sep 25, 2013 2 Minute Read

Advantages of Selling Universal Life Products

A universal life policy is a type of whole life insurance which also acts as an investment vehicle to the insured. In the difficult current financial environment, people are having more trouble than ever saving for and reaching retirement. A universal life policy can actually be a major aid in that regard. With universal life insurance, life insurance sales become easier for the producer. Here are some of the benefits that make universal life policies advantageous for the insured, and in turn for the producer trying to sell them.

Cash Value

Unlike term life policies, universal life policies build up cash value over time. Part of the insurance payment made by the insured goes toward safe investments, which in turn build up value over time. The insured also receives interest credits for the money invested. This adds up to a rising cash value, which can be greatly beneficial to the insured when the time comes to retire, or when they need access to cash in an emergency.

Flexible Premiums and Adjustable Death Benefit

Universal life offers flexibility not found in other types of life insurance. The insured has the option to adjust the death benefit at certain times, without having to take out a new policy. Premium amounts are also highly adjustable, as the insured can pay anywhere from a minimum amount to an IRS-imposed maximum, depending on their cash value goals and other plan details, and can adjust or even skip payments as needed based on the policy.

Cash Surrenders and Loans

Since a universal life policy builds cash value over time, the insured has the option of accessing that cash either through loans, or cash surrenders from the policy. The money in a universal life policy is tax-deferred, making it an attractive option for consumers, who can later use the money for retirement, paying off their mortgage or for emergency funding. These are just a few of the premium benefits of universal life policies which show that with universal life insurance, life insurance sales become much easier. Some producers are reluctant to delve into the universal life insurance market because they find it difficult to sell. But universal life insurance is easier to sell then you would think, as it provides the insured many benefits during their life, along with benefits to their family after death. Title Tag: Selling Accelerated Death Benefits | Diversifying your Sales Book Meta Description: Considering diversifying your life insurance sales book? You should consider accelerated death benefits.