What is universal life policy?

[gnail80]

Any experts can advise? Noob here.. Thanks!

 

[NiteX2]

It is an instrument used for legacy planning

 

[bigmice]

Any experts can advise? Noob here.. Thanks!

Universal life is Single premium policy which only cover death.
min sun assure US$500k US$.

only for these person whose anuual income more than 180k
or net worth more than 1 million (exclude property).

premium can loan from bank. eg. need pay bank 1.5% interest buy invest return is 4%, so this is sure earn money policy but regret only rich people can buy.

 

[Jchuaym]

I don't know about GE's plan, but AiA can offer 10 years multi-pay. And not only the rich can buy. Consider a 30 yo male non smoker , a $500,000 policy will only cost him 8,889 a year for 10 years. That's just about $741 a month.

Universal life is Single premium policy which only cover death.
min sun assure US$500k US$.

only for these person whose anuual income more than 180k
or net worth more than 1 million (exclude property).

premium can loan from bank. eg. need pay bank 1.5% interest buy invest return is 4%, so this is sure earn money policy but regret only rich people can buy.

 

[FP_IFA]

Most Universal Life plans are in US$ and it is not a sure win policy. If interest rate drop you can lose money because the policy is unable to sustain. And in some cases you might even have to top up premium if the policy is unable to keep up with the mortality charges on the insurance cover.