Unum Universal Life Insurance: Flexible Protection with Cash‑Value Potential

Introduction

Life changes—marriage, parenthood, business growth—often call for insurance that adapts. Unum Universal Life Insurance offers enduring death‑benefit protection paired with a tax‑advantaged cash‑value account that grows at a declared or indexed interest rate. With flexible premiums and adjustable coverage, Unum’s universal life (UL) solution gives policyowners the freedom to align their protection and savings with evolving financial goals.

1. What Is Universal Life Insurance?

Universal life is a type of permanent life insurance that combines:

• Lifetime Death Benefit
  A guaranteed, tax‑free payout to beneficiaries whenever you pass.
• Flexible Premiums
  Pay more or less (within contractual limits) based on budget and cash‑value performance.
• Cash‑Value Accumulation
  Each premium payment (after costs) credits interest to your cash value, which you can access via withdrawals or loans.
• Adjustable Death Benefit
  Increase or decrease your face amount (subject to underwriting) to match life events.

2. Key Features of Unum Universal Life

3. How Unum’s UL Differs from Whole Life

Universal life suits those seeking flexibility and potential market‑linked gains, while whole life appeals to buyers who prefer predictable guarantees.

4. Advantages of Unum Universal Life

1. Budget Adaptability
   Increase or reduce premium amounts to match cash‑flow needs, subject to policy terms.
2. Lifetime Coverage
   So long as you meet the minimum funding requirement, coverage lasts your entire life—no term renewals.
3. Tax‑Deferred Growth
   Cash‑value accumulates tax‑deferred; loans and withdrawals can be structured tax‑efficiently.
4. Protection & Savings in One
   Combines a death benefit with a savings vehicle, replacing separate investments and insurance.
5. Transparency & Control
   Online policy statements show cash‑value performance, cost‑of‑insurance charges, and premium flexibility.

5. Choosing Interest Crediting Methods

• Declared Rate Option
  Unum guarantees a minimum interest rate and may declare a higher crediting rate annually.
• Indexed Option
  Cash‑value growth is tied to a market index’s performance (subject to caps and floors), offering upside potential with protection against negative index returns.

Discuss with your Unum agent which crediting method aligns with your risk tolerance.

6. Common Policy Riders

• Accelerated Death Benefit Rider
  Access a portion of your death benefit early if diagnosed with a terminal illness.
• Waiver of Cost of Insurance Rider
  Unum waives monthly cost‑of‑insurance deductions during total disability, preserving cash value.
• Guaranteed Insurability Option
  Purchase additional coverage at specified future dates—without new underwriting.
• Cost‑of‑Living Adjustment (COLA) Rider
  Automatically increase your death benefit to keep pace with inflation.

7. How to Apply for Unum Universal Life

1. Get a Quote & Illustration
   Work with a Unum agent to model premium flexibility, cash‑value projections, and death‑benefit scenarios.
2. Select Your Options
   Choose benefit amount, premium schedule, interest‑crediting method, and any riders.
3. Underwriting Process
   Complete a health questionnaire; larger face amounts may require a paramedical exam and medical records.
4. Review & Accept
   Examine the policy illustration, ensuring you understand minimum premiums and potential cost‑of‑insurance changes.
5. Issue & Monitor
   After approval, pay your initial premium. Use Unum’s online portal to track cash‑value growth, adjust premiums, or request loans.

8. Frequently Asked Questions

Q: Can I ever let the policy lapse?
A: If cash value falls below the monthly cost‑of‑insurance, you must add funds or the policy will lapse; paying at least the minimum premium maintains coverage.

Q: How liquid is the cash value?
A: You can borrow against it nearly immediately; withdrawals may be subject to surrender charges and reduce your death benefit.

Q: Are loans taxable?
A: Generally, policy loans are not taxable if the policy remains in force; withdrawals beyond basis may incur taxes.

Q: Is Universal Life right for me?
A: UL is ideal if you value the ability to vary premiums, want potential market‑linked cash‑value growth, and need lifelong coverage.

Conclusion

Unum Universal Life Insurance delivers a uniquely flexible, permanent protection solution—blending a customizable death benefit with tax‑advantaged cash value. Whether you seek to optimize cash‑flow, pursue savings potential, or lock in lifetime coverage, Unum’s universal life policies empower you to adjust as life unfolds. Contact a Unum representative today to design a UL strategy that’s as dynamic as your financial journey.