Protective Life Insurance Review 2022 – Forbes Advisor

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Protection offers five types of life insurance products:

  • Term life
  • All the life
  • universal life
  • Indexed universal life
  • Variable Universal Life

Protective term life insurance

Term life insurance is ideal for people who want to cover a specific period with fixed premiums. For example, if a person wants enough coverage to replace their income in the event of their death, a term life insurance policy with a term that covers the remainder of their working years is ideal. Term life insurance is often the cheapest life insurance option, but it doesn’t create cash value.

Protection provides the Classic protective term of choice life insurance product for people aged 18 to 52 looking for term life insurance. You can choose terms from 10 to 40 years for coverage amounts ranging from $100,000 to $50,000,000. These term life insurance policies are renewable up to age 90, but you should be prepared for increased premiums with each renewal.

whole life insurance protection

If you have a whole life insurance policy, a death benefit is guaranteed as long as you pay your premiums, regardless of how long you live. Whole life policies offer the advantage of creating cash value with a guaranteed rate of return and the assurance of premiums that do not change. You can borrow against the cash value of your whole life insurance policy for any reason.

Non-participating protective whole life insurance is a policy that does not pay cash dividends like some other whole life policies. The premium, death benefit and cash surrender amounts are fixed at a fixed amount when you purchase coverage. It is available for people up to 90 years old. This policy has death benefits starting at $1,000 or $100,000, depending on your condition and risk classification, and up to more than $1 million.

Protection universal life insurance

Universal life insurance provides coverage that can last a lifetime, depending on the type you choose. Some types of universal life insurance offer level death benefit periods (including a lifetime option) where premiums and death benefits do not change.

If you choose universal life with cash value accumulation, you can withdraw or take out cash value loans for any reason.

Custom choice of UL protection offers flexible low premiums with no cash value accumulation and is available to buyers aged 18-85. With this type of UL policy, one can choose a death benefit level period of 10, 15, 20, 25, or 30 years, or lifetime. During this time, premiums and death benefits remain stable or unchanged.

Unless you have chosen the lifetime option, after the initial level period, premiums will remain stable, but your death benefit will decrease each year until it reaches $10,000, at which time premiums will begin to increase.

Death benefit coverage amounts start at $100,000 and can reach over $1 million.

Protection-indexed universal life insurance

Indexed universal life insurance is an option for people looking for cash value that will rise (or fall) with an index, such as the S&P 500, and the flexibility to vary premiums and death benefits.

Dividend limits on cash value growth and fees are commonly associated with index-linked universal life products.

Indexed choice of UL protection is Protective’s index-linked universal life insurance product available to buyers aged 18 to 75. With this policy, you can choose two interest accounts. One option is a fixed account where the interest rate will never fall below 1%, and the other option is an indexed account where the cash value can rise or fall based on the performance of the S&P 500. The account fixed is less risky and less profitable. , while the indexed account has a higher risk with a higher potential return.

Index accounts have a guaranteed minimum floor rate of at least 0%, which means the interest rate your cash value earns can never fall below 0%, protecting you from a loss in value. due to poor performance of the S&P 500. However, you may lose value as policy fees are deducted from the account.

After your first year as an Indexed Protector Choice UL policyholder, you can transfer funds between your fixed and indexed accounts. You can also access your cash value through a loan or withdrawal for any reason.

Variable protection universal life insurance

Variable universal life insurance can be ideal for people looking for ultimate flexibility. With this type of policy, you can vary premium payments and death benefits. The cash value component is linked to several sub-accounts that you can select.

There is a fixed account option with a guaranteed minimum interest rate for those looking for a bit lower risk. Like other types of universal life insurance, variable universal life insurance gives you the protection to borrow or withdraw money from your cash value should the need arise.

For example, VUL II Strategic Protection Objectives is available to buyers between the ages of 18 and 90 and offers insured amounts starting at $100,000. The fixed cash value account option has an interest rate guaranteed not to fall below 1%. The variable account option gives you the choice of investing in one of four asset allocation portfolios (Conservative, Moderate, Growth and Income, Aggressive Growth) or if you want to choose your investments, you can invest in a custom portfolio where you select all your investment sub-accounts.

The minimum loan or withdrawal amount for the VUL II Strategic Protection Objectives is $500 and the maximum is 99% of the cash value of the policy.

This protective life insurance policy comes with built-in lapse coverage, which gives you a grace period if, on a monthly anniversary, the cash value is less than the monthly deduction. The grace period gives policyholders 61 days to pay outstanding deductions before the policy expires.

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