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Protecting Families' Changing Needs

March 30, 2020

Who would expect one life insurance policy to be flexible enough to conform to life's needs as they evolve? But universal life insurance can. Its many options and flexible features can grow with you over a lifetime of change. 

A permanent life insurance policy offers cash accumulation with control, flexibility, and options - it's well-suited for addressing changing needs.

Life events many individuals experience include:

Example: How a Universal Life Plan Can Change As Your Needs Change

Year 1:

Twenty-two-year-old Joe is a recent college grad, who paid for 30 percent of his own tuition. He says this taught him the value of saving.

Joe purchases a universal life policy to take advantage of the cash accumulation feature. He opts for the increasing face amount and is comfortable budgeting $200 monthly.

Year 4:

Joe marries and starts a new, better paying job. He increases his premium to $400 monthly and his wife, Mary, buys a 30-year term policy.

Year 6:

Joe earns a promotion at work and feels like he can put extra money aside so increases his premium.

Year 9:

Joe celebrates his 30th birthday and the birth of their first child. He again increases his policy premium to help fund his child's college education.

Year 27:

At Joe's age 48, his child enters college and, to help with college expenses, he ceases premium payments on his policy for four years. He also withdraws cash from the policy for the same four-year period.

Year 31:

After college graduation, Joe, now age 52, increases his premium as he and Mary begin looking forward to retirement.

Year 46:

Joe and Mary retire at age 67. At this point, they can:


  • Continue premiums to maintain the policy's full death benefit
  • Stop premium payments, leveling off the death benefit to reduce policy charges, and increase the policy's longevity
  • Stop premium payments, leveling off the death benefit and take withdrawals and loans to supplement their retirement income



Year 65:

Joe dies at age 86. Mary receives the income tax-free death benefit.


Advantages of a Flexible Universal Life Plan

Flexible Coverage: As your life changes, one universal life policy can change with it. The control, flexibility, and options it allows address multiple needs.

One Policy for Your Lifetime: A universal life plan is permanent life insurance; it remains in force for as long as you live.

Living Benefits and Death Benefits: Cash values accumulate and can be used as desired - no need for loan approvals.

Tax Advantages: There are three big tax advantages all in one policy:

Helps Guard Against Inflation: Universal life's increasing death benefit feature helps to offset some of the inflation's impact on the benefit's purchasing power.

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