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UNIVERSAL LIFE INSURANCE

Protection That Gives You Choices

Take the first step with a FREE universal life insurance quote.

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What Is Universal Life Insurance Policy?

Universal life insurance is a permanent life insurance policy, and the coverage can last your entire life if it's managed correctly and your premiums are paid. Typically, when you first buy your policy, you pay enough to potentially build up cash value within the policy itself. Then, when you're older, the accumulated cash value can sometimes make up any difference in policy costs so you don't face increased premiums.
Young couple working at home

How Does Universal Life Insurance Work?

Universal life insurance combines fixed coverage with tax-deferred cash value growth tied to current interest rates. This type of permanent insurance may be a good fit for:

  • Individuals with life insurance needs that may change over time.
  • Those looking for generally lower premiums compared to other permanent policies.
  • People who want the opportunity to build cash value within their policy.

While universal life insurance policies maintain certain guarantees, they provide benefits that are based on current actuarial assumptions and market conditions, which may change over time. Changes in these assumptions may require additional premium payments in order to meet your needs.

Learn More About How Universal Life Works
Learn More About How Universal Life Works

Benefits of Universal Life Insurance

Control

Universal life insurance gives you flexibility to adjust your payments. You can increase premiums when your income is higher or reduce them during tough times, if there's enough cash value to cover monthly charges.

Flexibility

Some universal life policies let you adjust the death benefit. You may be able to lower it or increase coverage - for example, going from $300,000 to $400,000 - without buying a new policy, though approval may be required.

Types of Universal Life Insurance Policies

Traditional Universal Life

In a traditional universal life insurance policy:

  • Cash value growth depends on market interest rates, the amount of premiums paid, and monthly policy charges.
  • A minimum annual interest rate is typically guaranteed, even if credited rates fluctuate.
  • Some policies may offer a guaranteed death benefit if sufficient premiums are paid, helping prevent policy termination.

Indexed/Fixed Indexed Universal Life

In an indexed universal life insurance policy:

  • Gives you flexibility in how your funds are allocated
  • You choose how to divide funds among interest-earning accounts.
  • Returns are tied to a market index, which can fluctuate or even be negative in some years.
  • This added volatility makes it riskier than traditional universal life insurance.
  • Some policies may include a guaranteed death benefit.

 How Much Life Insurance Do I Need?

Answer a few questions about your life situation to estimate how much coverage you might need.

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Examples of How Universal Life Insurance Coverage Works

Universal life could work well for younger applicants who have more time to potentially build their cash value while insurance costs are low. It can also be an effective choice for applicants who want flexibility with their premiums. Universal life could also work well for people who are unsure of how much life insurance they need.
construction worker
Let's say Andrew works as a construction worker and makes most of his money during the summer. He may like universal life because he can make large payments during the summer while reducing his premium payments during off-season months.
newlywed couple planning
If Tanya is a recent newlywed who wants children someday, for instance, she might not know just how big her family will get. She buys a $400,000 universal life policy that lets her adjust the death benefit. She may be able to increase or decrease the size of her policy once her family situation becomes clearer.

Get Your Universal Life Insurance Quote Today

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Why Western & Southern?

When you’re looking for universal life insurance protection, Western & Southern has a heritage of providing life insurance to people just like you. Our financial ratings make us one of the strongest life insurance groups, offering you the financial stability you can count on. We have knowledgeable financial representatives available to help you with your insurance needs.

Financial Strength

established 1888

Longevity & Stability

95 Comdex Ranking

Financial Ratings

Common Universal Life Insurance Questions

Does universal life insurance have cash value?
Universal life insurance can build cash value, which you could also take out and spend while you're still alive. However, keep in mind that doing so may generate an income tax liability, reduce the account value and the death benefit, cause the policy to lapse and incur surrender charges, which can vary depending on your age, gender and underwriting class. The growth of your cash value depends on market rates, the amount of premiums paid and the cost of monthly policy charges.

What is the difference between universal & whole life insurance?

Universal and whole life insurance are both permanent policies that can last your entire life. However, there are some differences between universal and whole life insurance. With whole life insurance, your premium typically stays the same over the life of the policy, and with universal life insurance, you may have the flexibility to adjust your premium as long as you pay enough to cover the cost of insurance each year.

Universal life insurance is also usually less expensive when you first sign up, but then your insurance costs increase over time as you get older. You need to build enough cash value or pay enough in premiums to cover these growing costs or else you could lose your coverage. Whole life insurance is typically more expensive from the start but the premium will not increase over time.

Finally, whole life insurance has generally lower but steadier cash value growth. The life insurance company typically pays a fixed return that's partially guaranteed. With universal life insurance, your cash value return can change year after year. The cash value has the potential to grow more quickly than whole life insurance policies, but it may grow less and you may even lose cash value over time.

Can you cancel a universal life insurance policy?
Yes, if you decide you no longer need coverage, you could cancel the policy and take the surrender value as a cash payment. The insurance company will send you a check for your cash value balance, minus any fees or outstanding loans. If you receive more cash value than you paid in total premiums for the policy, you will owe income tax on your gain.

Can you borrow money from the policy?
Yes, you could take out a loan or a withdrawal from your cash value while keeping your coverage. It's important to note, however, that loans or withdrawals may generate an income tax liability, reduce the death benefit and may cause the policy to lapse.

What happens to cash value in a universal life insurance policy at death?
When you die, the life insurance company does not always transfer the cash value to your beneficiaries. However, most universal life insurance policies do have a death benefit option that pays the beneficiary both the death benefit and the cash value, in addition to the option that only pays a death benefit.
IMPORTANT DISCLOSURES

Flexible Premium Adjustable Life Insurance Policy series ICC18 1808-4001 WSA, ICC18 1808-4000 WSA issued by Western-Southern Life Assurance Company, Cincinnati, Ohio, which operates in DC and all states except NY.

Flexible Premium Adjustable Life Policy with Indexed Options Policy Series ICC17 CL 88 1708, Flexible Premium Universal Life Insurance Policy Series ICC19 CL 85 1901 and ICC10 CL 87 1006, Flexible Premium Survivorship Adjustable Life Insurance Policy With Indexed-Linked Interest Options Policy Series ICC19 CL 92 1908 issued by Columbus Life Insurance Company which operates in the District of Columbia and all states except New York.

These policies and benefits may not be available in all states, and benefits may vary by state.

Payment of benefits under the life insurance policy is the obligation of, and is guaranteed by, the issuing company. Guarantees are based on the claims-paying ability of the issuer. Products are backed by the full financial strength of the issuing company.

Life insurance policies contain certain exclusions, limitations, reductions of benefits and terms for keeping them in force. Please contact a financial representative for complete details.

Life insurance products are not bank products, are not a deposit, are not insured by the FDIC, nor any other federal entity, have no bank guarantee, and may lose value.

Expedition SIUL™ Survivorship Indexed Universal Life Insurance and Indexed Explorer Plus are issued by Columbus Life Insurance Company, a member of Western & Southern Financial Group, Inc. At Western & Southern Financial Group, Expedition SIUL™ Survivorship Indexed Universal Life Insurance and Indexed Explorer Plus are offered through Western & Southern Life.