Heavyweight bout of the century - Whole Life vs. Universal Life

Whole Life vs Universal Life

The match of the century between the heavyweight champions of Life Insurance

Whole Life and Universal Life both have had their fans and critics ever since universal lfe or UL's were spun off as a more flexible and interesting option to what some were calling "stodgy & boring" whole life in the late 70's and early 80's

Certainly that is a very simplistic description of the two products.  The arguments of the two seem to fall into these tracks.

UL offers more cash value with flexiblity in premiums and terms while offering more transparency.

WL guarantees to provide to the owner what he signed up for without unpleasant surprises down the rode.

One person's stodgy and boring is another's peace of mind.

As the face off begins, the two product lines have been doing well, in their own ways, since the 2008 financial crash.  WL has been on a steady ascent since the past recession started.  It has showed 15 consecutive quarters of premium growth as of the first quarter of this year, leading to a 33 percent market share, according to LIMRA (www.limra.com) 

UL has a bigger chunk of the market at 40 percent, even though it has had a more ragged history of premium and policy growth since 2008.  But the interest has come back to UL, primarily because of the indexed UL (IUL), which is a small but booming line of products.  UL showed a 8 percent premium growth in the first quarter.  Though this was fueled by a 23 percent increase in IUL premium.

All the products in the UL and WL spheres are excellent choices for clients individual needs and risk tolerances.  But there are clear distinctions and considerations that you need to be aware of as these two heavyweights are presented to you.

It is key that you have a professional who has sold both products and understands what is behind the curtain.  As good as these products are it is very important that they are set up correctly.

Whatever you do - do something.  Just imagine you not coming home tonight and what that would mean to your family.

For more go to : www.yourinsurance411.com  - Because you care.