Universal Life Beats Term!

Presented by Brian Leising

For those who attended the Financial Brokerage 2015 Sales Summit (and those who couldn’t make it), two of the most popular sales ideas proved that Universal Life Insurance could cost your clients less money than Term Life Insurance!  Here are two scenarios from Prudential and Protective Life:


UL Beats Term– This works for clients who have ample cash flow.  The example is attached.  A male age 63 could purchase a 20 year term for $9715/year, paying a total of $194,300 over 20 years.  You could save him $33,132 by selling an 8-pay UL for $20,146/year (total outlay $161,168).  If the annual premium is too high, you could drop it down to a 12-pay for $14,410.  This saves the client $21,380 for a total outlay of $172,920.  In all scenarios, the client has $1,000,000 of death benefit for 20 years.  With the UL, he saves money and has the option to continue coverage by resuming premium payments.  He would be too old to convert to a permanent plan at age 83.  By the way, the commissionable target premium on the UL is $19,910 versus the $9715 for the 20 year term.  Do you want to overpay for term with no options or save money and maintain your options with a UL?


Renting (term) vs. Owning (UL) – Owning usually costs less than renting over time and life insurance is no exception.  Our example was a 45 year old male preferred non-smoker purchasing a $250,000 lump-sum death benefit with an Income Provider Rider paying an additional $60,000/year for 10 years.  If he purchases a 20 year term at age 45 and a 30 year guarantee UL at age 65 his total outlay will be $404,494 by age 95.  If he instead purchased a UL with an age 95 guarantee, he would only pay $221,400.50 over the same time period.  That’s a 54% savings!!!  What could your clients do with an extra $183,093.50?

Pru UL beats term

Protective UL beats term

  Term Universal Life
Age 45 annual premium $938.21 $4428.01
Age 65 annual premium $12,857.60 $4428.01
Age 95 total paid $404,494 $221,400.50


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