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Direct Questions to:
tnhokie@comcast.net
or contact:
Roger Neal at
865.584.0716

After the stock market losses experienced during years 2000, 2001 and 2002, a lot of people are looking for investments that are guaranteed and safe. The same less desire for uncertainty holds true for life insurance too!

The PROBLEM is that many Universal Life policies face the possibility of lapsing… yes, a Universal Life policy has the potential to CRASH! “Older Universal Life policy illustrations, used as selling tools, are not worth the paper they were printed on.” Illustrations weren’t met because interest rates fell and mortality costs increased!

The ANSWER is the new “breed” of Universal Life…the GUARANTEED UNIVERSAL LIFE (GUL) policy. A GUL policy stipulates that the death benefit will continue, regardless of the cash value account (it can even be zero) as long as a designated premium is paid.

• A FIT is any insured that is uneasy that his policy will crash! Many life companies have been sending letters to their insureds stating that mortality cost are on the increase and that additional premiums will be required to keep their policy in force to age 90/100.
• A FIT is for those where cash value growth is not a primary concern…with the primary concern coverage for more than thirty years at a premium less expensive than traditional whole life.
• A FIT is for those that want “term” life insurance for more than thirty years.

One SOLUTION is the “1035 exchange” of the current policy’s cash values, over to the GUL, with the “same” monthly premium (or whatever premium mode is being used). In many cases, as long as the insured’s health has remained basically the same, the insured can keep the same amount of coverage with lapse protection to age 90 or age 100! This “exchange” has worked many times even with insured years older than when the original policy was purchased.