Universal Life Insurance Hawaii HI

Reader’s Question:

Hi. I want to get a life insurance policy here in Hawaii. What can you recommend to me that may give me flexibility on paying premiums?

Stella

Honolulu, HI

Stella, you are correct to consider your capability in paying your premiums. There have been a lot of life insurance policies that have lapsed or expired just because the owner cannot pay the premiums anymore.

You can consider getting a universal life insurance with guarantees. Life insurance companies are bothered by lapsing policies, and to address this problem, they have come up with a solution they call a “second guarantee.”

Universal life insurance is a type of permanent life insurance where you can pay your premiums in a flexible way. Flexible meaning it is not fixed. As long as your cash value is earning enough to pay for the premium or the cost of the insurance, you would have no problems. However, should you not have enough cash value earnings to cover your premiums, the “second guarantee” then comes into play.

Second guarantees are attachments, sort of like life insurance riders, where you will also pay additional premiums. So, let’s say you can’t pay for the whole amount of your universal life insurance, you just need to continue paying for your second guarantee premiums (which of course is smaller than the whole amount), and your death benefits from your original universal life will still cover you. However, usually, there is a “catch up” provision–you still eventually have to pay the premiums you missed.

If this is what you are looking for, then don’t forget to call your life insurance agent in Hawaii for an appointment.

Tags: life insurance, life insurance policy, life insurance premium, universal life insurance