Flexible Life Insurance: Pay It Up, Out, Or Forward

Flexible Life Insurance: Pay It Up, Out, Or Forward

There is something to be said about a good story. Using a story to explain how a life insurance product works is not only a great way to keep things simple but can help drive key features and allow them to stick with your clients.

How often are your clients faced with the decision of choosing between a low-cost term policy and permanent life insurance? United of Omaha has a product that will allow clients to get the insurance they need now, and also offer the flexibility of getting money back or keeping the insurance, at a later date – I am not talking about a conversion.

Help your clients take action on such an important element of their financial plan by using Barbara’s story:

Barbara just purchased a United of Omaha Guaranteed Universal Life policy, with the following specifics:

  • Female Age 54
  • Standard Non-Tobacco
  • $1,000,000 Death Benefit
  • Lifetime Guarantee to age 120
  • $10,924 Annual Premium

Pay It Up

Fast forward to year 20… Barbara is now 74. She is retired and has enough to live on for the remainder of her life. However, she would like to have some extra money to travel in her retirement years and she no longer has a need for $1,000,000 of coverage. So…she decides to take a reduced policy for $660,000 – which will be paid up to age 120. By doing so, she no longer has any premium payments, and now has an extra $10,924 per year to use for travel. And, by the way, she still has access to $528,000 of her death benefit if she has a chronic illness.

Fast forward 5 more years…Barbara is now 79. She no longer wants to travel and no longer has a need for any life insurance coverage. She is able to cash in her policy for a full refund of the premiums she paid over 20 years ($218,480) and can use this money to supplement her retirement income.

Pay It Out

Barbara has the flexibility to cash in her policy for a refund of premium after year 15 (50% refund), year 20 (100% refund) or year 25 (100% refund)

Pay It Forward

Barbara simply continues to pay her annual premium and the $1,000,000 death benefit will go to her heirs when she dies. And, she has access to $800,000 of her death benefit if she has a chronic illness.

This is a great story, and a great product offering major flexibility. For more information, contact your Life Sales Rep.