Hybrid Universal Life Insurance – Low Cost Term/UL Coverage

Most consumers looking to maintain life insurance coverage for specific shorter period of time typically only 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 universal life, often referred to as Term/UL.

 

Hybrid Universal Life Insurance

If you buy a hybrid universal life policy, the premium and death benefit can be guaranteed to last until any age. These 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 life or affordable universal life. Consumers only looking for a longer duration have a more flexible choice with a new hybrid product that combines elements of both term life coverage and universal life.

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.

However, the premiums and death benefits can still be guaranteed to a specific age (i.e. 90, 95, 100). So, premiums can be scaled to coordinate with your desired budget and the face amount required for your family.

Here is an example, of the monthly rates for a healthy male for $100,000 of coverage.

Hybrid Guaranteed 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

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.

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.

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

universal life, hybrid universal life 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.

Eric Van Haaften, LUTCF is the president of Affordable Life USA. We are a nationally licensed life insurance agency focused on finding our clients custom planning solutions at excellent prices. 1-877-249-1358. eric@affordablelifeusa.com