Individual Universal Life Plans *
Individual Universal Life Plans *
Individual Universal Life Insurance Plans: can help you meet a variety of financial objectives. Plans can be custom built to meet your specific objectives such as traditional individual death benefit coverage, advanced estate planning, insuring a vital employee and insuring business continuation. Our many unique riders and large variety of Universal Life Plans, which offer flexible components, tax-free death benefits, tax-favored policy distributions, and many other features, make Individual Universal Life Plans an excellent choice for a variety of different security needs for your loved ones.
Flexible features of some plans: the ability to pay premiums on a flexible schedule. After paying the first required premium, owners do have the flexibility to vary the timing and amount of premium. Policyholders may even elect to pay a single premium for their coverage needs or defer a premium for a time due to financial constraints, provided the cash surrender value covers the policy charges on each monthly anniversary. Some plans offer no lapse guarantee provisions, which may meet policyholder secuity needs better. Some of the other flexible options include the ability to lower or raise your specified amount (death benefit) as your security needs change (subject to underwriting guidelines). After a period of time, it may be possible to reduce or increase your policy premium to meet budget constraints, if necessary, provided the cash surrender value is able to cover the policy charges for each monthly anniversary.
The premium and death benefit flexibility, the ability to personalize the contract with riders, and the right to take outlays from the policy allow these plans to be the only life insurance contract a person needs over his or her lifetime.
In addition, the Individual Universal Life insurance plans also make it easy for owners to see and understand where their premium payments are going. Details of policy transactions are easily accessible along with annual reports. Annual reports illustrate the change in the value of the policy by showing the premiums paid, policy expenses and fees, mortality charges, withdrawals and loans taken out, and interest credited to the policy.
Some possible other advantages of this plan:
Tax-free death benefits: Proceeds of the policy can pass to heirs free of income or capital gains tax. If the plan is properly structured it is possible to avoid estate taxes on policy proceeds as well.
Tax-deferred earnings: While your policy is in force, the cash building up in your policy is free of current income tax, thus helping your policy cash values grow faster.
Tax-free loans: The cash funds in your policy may be accessed with a policy loan, usually with no tax consequences, as your financial needs might require. We should remind you, though, that any policy loans will reduce your cash surrender value and your death benefit until re-paid in full.
Bonus: These bonuses are to encourage the continuation of the plan and reward those long-term policyholders; they may vary depending on your selected plan. This bonus is not guaranteed in the policy and may not be available in all states.
Riders are available to customize this plan for your specific needs: Riders, coverage additions and certain policy changes require underwriting approval. Some possible riders include the following and may or may not be available with your chosen plan. Please contact us for availability concerning inclusion of specific desired riders:
Accidental Death Benefit: Pays an added death benefit upon the accidental death of the insured as defined by the policy.
Disability Continuance of Insurance: After six months of total disability, as defined by the policy, the rider will provide continued life insurance during the total disability of the insured.
Disability Payment of Premium Rider: A benefit amount set up by the policyholder to assist with the premium pay of the policy during a period of total disability, as defined by the policy. When added to possible cash value of the policy, it may keep the policy in force if it is sufficient to meet premium requirements.
Children's Term Rider: Provides level term insurance on each child of the insured.
Option to Increase the Specified Amount: At specified option dates as defined in the policy, regardless of health.
Maturity Extension Rider: Can extend the maturity by twenty years
Other Insured Term Rider: Provides level yearly renewable term to the person insured by it.
Living Benefits Rider: Provides the insured with the choice to receive some of the policy specified amount as a living benefit when policy requirments are met for an insured who has a terminal illness.
Additional Life Insurance Rider : Provides level yearly renewalable term insurance that must be purchased at issue of the base policy, and which can provide added coverage to age 100 or can be dropped before then if the policyholder feels it is not necessary at some prior time.
Monthly Benefit Rider: Provides a replacement for the family's lost income after the death of the primary insured. The rider pays a monthly benefit to the beneficiary for a selected period with an option to increase it for inflation up to 3% yearly, as long as it does not exceed policy limit as defined in the policy. There is a FaithGuard option that can be added at no additional cost, which will pay an additional 10% of the monthly amount paid to the beneficiary, to the policyholder's church.
* This information is given to assist persons in understanding the nature of this product type in general terms, and it must not be considered as a binding contract or a copy of the policy in any way. An issued life insurance contract (policy) that you have purchased from a life insurance company must be viewed as the only contract reflecting your policy, and it must be reviewed for its limitations and benefits, between you and the life insurance company. Policy provisions may vary by policy and state and may not be available in your state. Contact us for availability and a review of a plan of security for those you love. The above mentioned life policy is underwritten by Kansas City Life Insurance Company.
E-mail dphelps@phelpsfinancial.com
Phone (614) 899-6000 or toll free 1-877-471-7997 for MI, IN, WI, KY, & OH
06/01/2005