On the lifeinsure.com site there is an article describing universal life with secondary guarantees.
These secondary guarantees overcome one of the main objections to universal life insurance policies which is that the policy could lapse or need additional premiums if interest rates go below those projected or if the life insurance company raises the cost for insurance (the mortality cost).
Secondary guarantees guarantee that the policy won’t lapse even if the above factors of interest or increased mortality costs come in. But what if you miss a premium on a universal life policy with secondary guarantees? In the past, you could lose the secondary guarantee!
Now, many of these policies have catch up provisions which allow you to make up missed premiums or even to fund the policy with lower premiums “betting” on interest rates and if that doesn’t work you can make up the premiums.
To learn more about secondary guarantees, follow this link to another blog article, go to the universal life section of the lifeinsure.com site to get a quote or call us at 866-691-0100