When a universal life insurance policy matures, the beneficiary(s) are paid the face value of the policy minus any premiums paid. This might be a lump sum or payments over a period of time, typically based on the age of the beneficiary at the time of death.
When a Universal Life Insurance policy expires, you’ll still have insurance coverage. However, the premium rates will increase.
Your existing policy will remain active for the term of the new rate structure and you’ll continue to receive benefits as long as you remain insured.
However, it’s possible that your existing policy will be canceled, especially if your insurance premium rates increase too much.
In that case, you’ll lose your coverage.
But there are ways to avoid this:
If your existing ULI plan has a fixed term, you can renew it at the current rate.
If your existing plan has variable premiums, you can switch to a fixed term or a guaranteed renewable term option, which allows you to renew the plan with no changes to your premium.
You can also transfer coverage from another group or cancel your existing plan to save money on your insurance.
You can find information about how to renew, transfer and cancel your plan online, or you can call your agent for assistance.
More about Policies
Many people are unaware that they could be eligible for a life insurance policy when they are already living their life. This life insurance policy might have been sold to you when you were a teenager, and while it was working for you, it has now matured. There are several reasons why you might have decided to keep your old life insurance policy and continue paying the premium. The first reason is that you feel it is more convenient and less expensive to have your existing policy than to set up a new one. The second reason is that you do not want to take a chance on your old policy. If the company that sold the policy decides to cancel your old policy, you might end up with no coverage. However, you are not prohibited from getting a new policy when your old policy expires. You just have to make sure that you have the right policy.
What to know
The age limit on a life insurance policy varies by the type of policy you have. For instance, a term policy has an age limit of 75 years and a whole life policy has an age limit of 80 years. If your policy is for a specific length of time, you will have to renew the policy every year. If your policy is for a certain amount of money, you will have to pay the full amount by the expiration date. As soon as your policy expires, you will be required to pay a yearly renewal fee to keep the policy in force. However, the company cannot charge you an additional amount if you are already paying the premium every year.
The following are the steps to find the right life insurance policy for you.
Step 1
If you are looking for a new policy, your first step would be to evaluate what is working in your current policy and see if any of those benefits are covered by a new policy. If you do not have any of these benefits, you will have to look for a different policy.
Step 2
You will have to review the documents you signed when you took out the policy. In particular, you will want to know what your policy covers. You can ask the company to send you copies of the policy. You can also obtain copies of your policy through the National Association of Insurance Commissioners.
Step 3
After you determine the coverage that you want, you can move on to the next step.
Step 4
Compare policies. You can compare policies on different websites. For example, you can compare the price, benefits, and terms of the new policy to the old policy.
Step 5
Ask your agent for recommendations. Your agent can recommend companies that provide good life insurance policies at a reasonable rate. If you do not have an agent, you can ask your insurance broker for referrals.
Step 6
Pick the right company. Before you choose a company, you will have to decide which companies are reputable. If you are a new policyholder, you can choose any company that you wish. However, if you are a current policyholder, you should stick to companies that you are familiar with.
