Hybrid Universal Life Insurance – Low Cost Term/UL Coverage

Most consumers looking to maintain life insurance coverage for specific shorter period of time typically consider term life insurance product. What if you would like coverage for even a longer period of time or to a specific age? Policyholders who are not interested in cash values and need a longer duration should consider hybrid life insurance, often referred to as Term/UL.

What is Hybrid Life Insurance

What is hybrid universal life?  As mentioned, hybrid universal life is also referenced as Term/UL by many life insurance companies. Hybrid insurance is a type of permanent life insurance which can behaves similar to term coverage with the premium and death benefit guaranteed to a specific age (i.e. age 85, 90, or 100)

So, if you buy a hybrid universal life policy, the premium and death benefit can be scaled to coordinate with your desired budget and the face amount required for your family. These term UL life insurance policies are designed for death benefit only, and are a cheaper version of guaranteed universal life insurance (GUL).

Since, most permanent policies focus on cash value accumulation it is hard for most people to find cheap whole and universal life insurance. Hybrid universal (term U/L) policies are much cheaper then other forms permanent coverage such as whole life coverage because they do not emphasize cash value accumulation.

Consumers looking for a longer duration compared to term insurance have a more flexible choice with a new hybrid life! This competitively priced life insurance policy that is not sold by all life insurance companies.

    Why Buy Hybrid Life Insurance?

Do you need a permanent life insurance policy?

But, have been procrastinating because you are concerned about the high cost of permanent coverage. Then, you really should take a serious gander at the new hybrid life insurance.

 

Most folks automatically associate all permanent coverage with much higher costing premiums because of the cash value element involved.

These applicants typically jump into term life coverage assuming it is always the best option for paying lower premiums.

Keep in mind, we are strong advocates of the long time adage of “Buy Term, and Invest the difference”. This philosophy is also embraced by popular radio celebrities  such as Dave Ramsey and Suze Orman.

The idea is to buy cheap term insurance, and invest the premiums that would have been allocated towards permanent coverage.

However, if you need coverage for a longer period of time, hybrid insurance coverage is now available at a similar price point to term life.

Hybrid universal life is slightly more expensive then term insurance at younger ages, but the price difference lessens as people get into their 50’s and 60’s.

 

Here are sample premiums for a $100,000 hybrid life insurance policy:

$100,000 Hybrid Universal Life Premiums

Age To Age 90 To Age 95 To Age 100
50 $65.62 $72.54 $76.48
51 $67.76 $75.29 $80.59
52 $69.97 $78.16 $84.96
53 $74.38 $82.69 $89.78
54 $81.34 $89.13 $94.94
55 $91.16 $98.62 $100.20
56 $94.06 $102.71 $104.70
57 $96.78 $106.73 $109.70
58 $99.22 $110.70 $115.30
59 $101.60 $114.79 $121.50
60 $103.79 $118.91 $128.40
61 $106.62 $124.48 $135.80
62 $110.42 $130.68 $143.50
63 $117.52 $139.52 $152.16
64 $126.78 $150.10 $161.18
65 $135.11 $160.35 $170.89
66 $136.90 $166.30 $181.74
67 $137.82 $171.87 $193.29
68 $146.91 $183.08 $207.10
69 $158.26 $196.21 $220.60

* Hybrid term/UL life insurance for monthly rates for anon-smoking, male

Reducing Coverage with Hybrid Term U/L

Typical universal life and whole life insurance contracts only allow for lifetime premiums and death benefits until the age of 100.

However, hybrid universal (term U/L) offers a much smaller premium in exchange for coverage which is dialed into a specific age.

If the policyholder does live beyond the originally selected age, the death benefit will simply begin getting smaller, while the original premium will continue to remain the same.

Term/UL Example:

Joseph has a $200,000 policy which guarantees his death benefit until age 85.

His term U/L premium is much cheaper then if he had selected a premium for coverage to last until he is age 100.

However, if he lives past the age of 85, the premium will continue to remain the same, while the death benefit will slowly start to decease until age 100.

This will allow Joseph to continue his coverage at the same cost even if he lives an very extended lifespan.

The hybrid insurance plan design offers a happy medium between term life insurance and higher costing permanent policies which build excessive cash values.

 

hybrid insurance pla

hybrid insurance policy

hybrid insurance

 

You can use Instant Life Insurance Quotes,  and select hybrid term U/L coverage to age 85, 90, 95, 100. If you need help with a customized proposal to any age you specify, please call us at 1-877-249-1358.

Introducing Eric Van Haaften:

Eric Van Haaften

Affordable Life USA is a nationally licensed and independently operated life insurance agency. The agency was started by Eric Van Haaften, over 25 years ago, from our home office located in Grand Rapids, Michigan. Please feel free to email him at: eric@affordablelifeusa.com, or call us at 1-877-249-1358.