Universal Life

Our Universal Life Insurance Portfolio includes a number of highly flexible plans, each with competitive pricing and easy-to-understand insurance coverage.

Universal Life is an excellent tool to preserve personal wealth and is designed to provide funds due to unexpected financial situations. A Universal Life plan combines basic insurance protection with an underlying guaranteed interest rate. Such a plan can be used for many different purposes, including:

  • Planning for Retirement
  • Education Funding
  • Family Protection
  • Wealth Transfer

Pan-American offers highly flexible Universal Life insurance products that can be customized to the client’s financial needs. In order to offer this type of flexibility, Pan-American offers the following benefits:

  • Choice of level, increasing or return of premium benefit in case of death
  • Ability to have premiums waived or paid for in case of a disability
  • Right to include other insureds in your policies

Universal Life plan allows for flexible payment

Universal Life insurance policies offer the flexibility of not having to make regular premium payments after the first year. Within certain limitations, policyholders can make payments whenever they want — or never, if the cash value of the policy is large enough. Typically, a target premium is set based on the amount the insurer needs to pay to keep the policy in effect until the insured is 100 years of age. If the insured decides not to pay premiums, the insurance company simply will continue to deduct the cost of maintaining the coverage from the cash value portion of the policy provided that the policy has enough cash value to make the monthly deductions to keep the contract value. In addition, the death benefit itself can be increased or decreased without having to buy a new insurance policy.

Universal Life plan interest rates

Universal Life policies typically guarantee a minimum interest rate, but if the insurance company’s investments grow at a higher rate, this increase is passed on to the policyholder. Universal life policies have the potential to offer a greater return if the insurance company’s investments are especially strong.

Universal Life plan benefit options:

  • Option 1 – Leveled death benefit; determined when the policy is applied for.
  • Option 2 – Increasing death benefit; the death benefit equals the sum of the original face amount plus the accumulated value. The death benefit increases with the increase in accumulated value.
  • Option 3 – Return of premium benefit; equals the specified amount plus the sum of the premiums paid less partial surrender taken.

© 2017 Pan-American Life Insurance Group. All Rights Reserved.

© 2017 Pan-American Life Insurance Group. All Rights Reserved.