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SFB082 Basics of Life Insurance, Part 2 - Universal Life Explained

| October 10, 2017
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Episode Summary

In part 2 of this seven part series on the Basics of Life Insurance, Paul sits down with Cory Shepherd, President of Sound Financial Group and author of Cape Not Required, to discuss Universal Life insurance.

What Was Covered

  • 02:01 - Paul and Cory explain how Universal Life (UL) takes its place between term and whole life insurance
  • 03:48 - How UL works
  • 05:11 - Paul discusses the downsides of a UL insurance plan
  • 07:26 - The Surrender Squeeze
  • 10:11 - The different types of UL: current, variable, and indexed
  • 12:16 - What happens if you go with a variable policy
  • 16:04 - Paul defines an equity indexed UL
  • 17:33 - The drawbacks of having equity indexed in life insurance
  • 22:26 - Paul explains what Guaranteed UL is
  • 23:51 - Cory tells us the different things that can go wrong with a Guaranteed UL plan
  • 25:09 - Paul explains why you need to request an in-force illustration if you have UL
  • 28:01 - Requesting an in-force illustration on equity indexed policies
  • 29:02 - Requesting an in-force illustration on variable UL


"Universal life, you can think of it simply as overfunded term insurance."

"The more flexibility you have as the insured, the more flexibility the insurance company has."

"The insurance companies do not have an illustration system that will allow you to test real variability of your contract."

"A great deal of gains in any index or in any market, are actually occurred in our really big years."

"If you have any type of Universal Life insurance request an in-force illustration."

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