SSQ’s Universal Life product comes with a variety of solutions to ensure that you can get the coverage that best fits your needs.
The Price of Universal Life Coverage
The amount you pay for insurance coverage is referred to as the insurance premium.
You have the choice of paying the insurance premiums in a variety of ways:
- An annual increase in premium costs ensures that the cost of the insurance coverage will rise year after year. The advantage of paying lower insurance premiums early in the policy’s existence is that you will save more money in the early years and increase your investment growth potential.
- The cost of your insurance plan is set when you buy a level cost policy. The advantage of this option is that your insurance costs remain consistent for the duration of the policy.
The Payout to Beneficiaries – The Death Benefit
The death benefit is the sum of money the heirs will get if you die. You have the option of choosing between two forms of death benefits:
- When you have an increasing death benefit, the tax-free benefit you get is equal to the insurance sum plus the cumulative value of your accumulated savings when you die. This form of policy gives you more options when the insurance requirements change over time.
- A level death benefit means that the tax-free benefit is equal to the premium amount or the value of accrued assets, whichever is greater when the insured person dies. If you don’t expect your insurance needs to change over time, this is a good idea.