Universal Life Insurance In force date vs. guaranteed assumptions

Anne66March 18, 2011

With a Universal Life Insurance policy that I have in force, there is the "Stay in Force Date" that ends in about 15 years. The company also sent me an illustration of the policy, which shows the "guaranteed assumptions" date for what I have been paying, which makes it look like the policy would end at a much later date than the "Stay in force Date". Can anyone explain this well for me. I don't like the help that the company gives over the phone.

Thanks.

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jkom51

Find an independent insurance agent who writes universal life policies for multiple carriers, and have s/he read your policy and give you an explanation of what it means. Any good agent will do this for you, gratis.

    Bookmark   March 18, 2011 at 2:56PM
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two25acres

There's cost associated with the policy itself, administrative and the actual cost of the death benefit. Those are probably based on current cost, interest rates and the amount you are paying. The assumptions may include a different premium amount, interest rate etc. It sounds to me as though they are saying they guarantee as long as you continue to make your payments and make no changes to the policy that it will stay in force until the date they give you (15 years). On the other hand to go further than the 15 years, maybe they have increased the premiums, the interest rate etc. to enhance the length of time the policy will remain in force. Is the product fixed or variable? Just curious why you went with the universal life policy?

    Bookmark   March 18, 2011 at 3:36PM
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