Main Features

There are a number of factors to compare a Universal Life Quotation and you can take reference from the pointers as listed.

a. Premium Amount

This is always the first section that everyone is concerned about, however you have to be aware if you have been quoted the same features for your comparison. There are some features within a Universal quote which might alter the premiums. This is namely (i) Does the plan hava a No Lapse Guarantee Feature and if Yes, at what age does the feature end? (ii) Does the plan Endow to Zero? These could be key factors determining the premium rates.

b. Break Even Year

This will help us to determine when is a good time for us to exit the plan without suffering any losses. This is applicable in technical terms, however many of those whom have bought plans will need to continue on the plan even when they break even as they do not want to lose the coverage.

c. Financing Rates

This is applicable to Single Premium Universal Life Plans where clients can opt to finance their premiums through a bank. Typical Rates for financing is between 1.2 to 1.75%. There are a variety of ways to finance the premiums.

d. First Day Cash Value

This value is applicable when premium financing is applied. This value determines the amount of financing allowed.

e. Surrender Value

Some like to compare the surrender values on a year on year basis. It could be a tedious way to compare as different insurers might have higher values at different periods of the plan.

f. Premium Frequency & Term

Although the preferred premium frequency is One Time Single Premium, clients can opt to pay the premiums over 5 to 20 years. The premium frequency differs for different insurers.

g. Credit Rating Of Insurer

This helps to determine the financial stability of the insurer. Since some insurers are not based locally, the credit rating is the best way to  determine the financial standing.