Universal life insurance
Flexibility as your life changes
Universal life insurance provides the potential for protection for your entire life, while offering the flexibility to change your premium or death benefit amounts. As your life takes twists and turns, you can modify your premium and face amount to fit your situation.
Universal life insurance benefits
- Potential lifetime protection for your loved ones
- Flexible premiums allow you to adjust your payments, or you can choose a fixed, consistent amount
- Ability to adjust your benefit amount to align with your changing life – you may want more coverage as your family grows and later decide to reduce your benefit as your children gain independence
- Ability to build and use cash value on a tax-preferred basis for unexpected expenses such as travel opportunities, supplemental retirement income or college funding
Universal life insurance considerations
- If you do not pay enough premium, the policy may lapse
- Loans and withdrawals will reduce both the death benefit and policy surrender value
- Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender – consult your tax advisor when considering taking a policy loan
Types of universal life insurance
What type is right for you?
If you and your financial advisor determine universal life insurance is a good choice, Securian offers three variations to choose from – fixed, indexed and variable.
The main difference between the products is the risk/return associated with their cash value. When choosing the ideal product for your needs, you and your advisor should consider your level of risk tolerance.
Risk and expected returns
Indexed universal life
Indexed universal life insurance offers cash value growth based on movement of an underlying index account, but does not participate directly in the market.Indexed universal life
You should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information. You may obtain a copy of the prospectus from your representative. Please read the prospectuses carefully before investing.
Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. Variable life insurance products contain fees, such as management fees, fund expenses, distribution fees and mortality and expense charges. The variable investment options are subject to market risk, including loss of principal.
Policy loans and withdrawals may create an adverse tax result in the event of a lapse or policy surrender, and will reduce both the surrender value and death benefit.
This information is a general discussion of the relevant federal tax laws provided to promote ideas that may benefit a taxpayer. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. Taxpayers should seek the advice of their own advisors regarding any tax and legal issues specific to their situation.
Guarantees are based on the claims-paying ability of the issuing insurance company. Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.