Advantages of Universal Life
Permanent, Flexible Protection
Universal life insurance combines the benefits of permanent life insurance and the ability to build cash value. Universal life offers premiums and payment schedules to meet both your insurance needs and financial goals.
Universal life policies have the advantage of building cash value, which
earns interest at a declared rate and is available to be surrendered from
the policy (subject to surrender charges and policy conditions). A loan
may also be taken from the cash value (subject to interest rates and
• Premium payments for universal life insurance can be structured
at many different funding levels ranging from minimal funding to
maximum funding (based on federal guidelines). Premiums may
be spread over any number of years and may be adjusted up or
down at any time by the policyowner.
• The cash value you build may be used to pay policy premiums.
• Policyowners may restructure their policy and even apply for
better rates after the policy is in force.
A universal life insurance policy can be used to provide financial
security throughout the many stages of life.
Death benefit proceeds may be excluded from income tax and may
be used to:
• Replace income lost due to
the death of a family member
• Pay debt obligations
• Help with education expenses
• Provide a surviving spouse
funds for retirement
• Aid with final expenses and
HIGHLIGHTS OF UNIVERSAL LIFE PRODUCTS
Perma Term 2 (Item #162) and Perma Term 3 (Item #163)
• Policyowners can apply for re-qualification every year, up to age
75, for lower cost of insurance rates. This may significantly lower
the cost of insurance and at the same time, increase the cash
value in the policy.
• No surrender charge applies on any amount withdrawn up to
10% of the policy anniversary cash value during each policy year.
• Policyowners may qualify for a discount of up to 5% of their
personal lines and 2% on their commercial lines with a supporting
life policy. (Subject to conditions and minimums. Eligible policies
may vary by state.)
Underwritten and issued by Auto-Owners Life Insurance Company.