The limited pay universal life (UL) insurance policy is for people who want permanent insurance and who want to finish paying for it within a certain time period (10, 15 or 20 years). Limited pay UL is easy to understand and manage and offers guaranteed insurance costs, guaranteed cash values, choice of cost of insurance periods and opportunities for tax-deferred growth in a variety of investment account options.

With a limited pay UL policy, all the charges are deducted in the early years, when most people are still alive, therefore providing less risk for the insurer as compared to products that see charges deducted for life, and results in lower cumulative charges over the life of the policy.

Universal life insurance policies, like whole life insurance policies consists of four parts:

Mortality Cost - a percentage of the premium that covers the pure cost of the life insurance death benefit.

Administration Cost - a charge for administering the policy and premium tax.

Savings or Investment - the remainder on your deposit after mortality and administrative charges have been deducted that is invested.

Return on the Savings - the interest rate that is credited to the cash value in your account each year.

To learn more about the limited pay UL policy and determine if this product is best for you call MyInsuranceBroker today!