Choices to make when choosing U-life
1. Death benefit:
Level death benefit (UL-regular)
payment equal to coverage (does not pay out deposits)
daily rate based on coverage less deposits (risk in insurance company reduce
by the amount in deposit)
Level amount at risk (UL-plus) (amount at risk is always equal to coverage)
payout equal to coverage and deposit
daily rate based on coverage
Level of risk (aggressive or conservative)
3. Cost of insurance:
Yearly renewable term (YRT): premiums start low, but increases yearly
Level cost of insurance(LCOI): level premiums
Missed premium payment:
By law: policy is still in force for 30 days: days of grace
Except if the policy has CSV
“Non-forfeiture options”: APL, RPU, ETI
1. APL (automatic premium loan): loan given to pay off premiums, against CSV.
2. RPU (reduced paid-up): surrender all CSV, no more premium payments, lower
coverage for life.
3. ETI (extended term insurance): surrender all CSV, no more premium
payments, same coverage for a period of time, expires after a certain period.
Reinstatement (within 2 years of cancellation):