Universal life policies all have flexible premiums and death benefits, which can change depending on your financial situation and market conditions. A cash value component can be used to pay for medical expenses or premiums.
Principal’s indexed universal products are linked to a stock market index, like S&P 500 for Nasdaq. These policies earn interest based on that index.
Principal’s variable universal life policies are more geared towards companies or executives. They could provide greater cash-value growth, but there’s risk for losses if the investments perform poorly.
Anyone age up to age 85 can apply for Principal’s universal life policies, which come with coverage amounts of $25,000 to over $15 million.
However, we suggest most shoppers go with a term life policy over a universal life policy. Universal policies are too complex, and more importantly, too expensive for most people. Unless you run a company or you’re planning an estate, you’re better off with a term life policy and a regular savings account from a bank.
Survivorship life insurance covers two people, usually a married couple. The death benefit is paid after the second person dies. Meant for people aged 55 to 85, there’s a minimum coverage amount of $250,000.
While this may seem like a good idea, we don’t recommend survivorship policies. These types of policies are mainly used for estate planning and for tax purposes, and the second policyholder may not die for decades, which would defeat the purpose of income protection in the first place. We suggest couples purchase separate term life policies instead.