What is universal life insurance? Universal life insurance is a form of permanent life insurance coverage. Out of all types of permanent life insurance coverage it is the most affordable, comes with a guaranteed fixed premium and provides a lifetime of insurance coverage.
It’s not uncommon for someone looking to purchase a permanent life insurance policy to mistake universal life insurance for whole life insurance or even be unaware that this insurance coverage even exists. Whole life insurance and universal life insurance have their similarities, but are also very different.
Confusion is understandable as both types of coverage are permanent, as well as have a fixed premium. Whole life insurance however is much more expensive as it focuses on earning greater cash build up within the policy. Universal life insurance does not focus on cash growth, but rather provides the absolute lowest premium for permanent life insurance coverage.
Universal life insurance is not only affordable permanent life insurance coverage, but many life insurance companies are adding tons of great policy features and riders such as the return of premium option.
Interested in learning more about universal life insurance? Feel free to give us a call 888-777-7574 or visit our page on our review of the best guaranteed universal life insurance.
What is Universal Life Insurance with Return of Premium?
Return of premium is most common with 20 and 30 year term life insurance life insurance policies. The return or premium coverage guarantees you a full refund of 100% of your premiums paid at the end of the term contract.
Be sure to check out our “Return of Premium Term Life Insurance” for a list of available return of premium term life insurance companies.
Since universal life insurance is permanent life insurance coverage, you may be wondering how it is possible to have a return of premium option on something that doesn’t end.
A few life insurance companies (3 at the moment) have designed their universal life insurance coverage to give their policyholders the option to surrender their life insurance coverage at specific policy years for a refund of their premiums.
3 Life Insurance Companies that offer Universal Life Insurance with Return of Premium
Universal life insurance with return of premium is not offered by all life insurance companies. There are only 3 life insurance companies that are offered by Top Quote Life Insurance that currently offer universal life insurance with return of premium.
Currently, universal life insurance with return of premium is rare but we hope to see more life insurance companies offering this option in the near future. If you’re considering universal life insurance coverage and like knowing that if your life insurance needs may change in the future, consider looking into one of the two following universal life insurance with return of premium options.
American General Life Insurance (AIG)
AIG offers a return of premium feature on their universal life insurance coverage called AG Secure Lifetime GUL III. The guaranteed return of premium option allows you the opportunity to surrender your life insurance coverage at two specific policy anniversary years for a refund.
- Surrender policy in year 20 and receive 50% of premiums paid
- Surrender policy year 25 and receive 100% of premiums paid or up to 40% of the death benefit
American National Life Insurance (ANICO)
As of February 1st of 2016, ANICO introduced their new guaranteed universal life insurance coverage called Signature Guaranteed UL and we must say it has some really great features. Not only does the life insurance coverage offer you three different anniversary years to surrender your coverage for a return of premium, it also comes with a terminal, critical and chronic illness riders also know as accelerated benefits.
- Surrender policy in year 15 and receive up to 65% of premiums paid
- Surrender policy year 20 and 25 and receive up to 100% of premiums paid or up to 65% of the death benefit
United of Omaha Life Insurance Company
You can also find the return of premium feature on United of Omaha’s Guaranteed Universal Life. The return of premium option is similar to AIG’s policy but offers an additional surrender year allowing you three specific policy anniversary years to surrender your coverage for a refund of premiums.
- Surrender policy in year 15 and receive 50% of premiums paid
- Surrender policy in year 20 and 25 and receive 100% of premiums paid or up to 35% of the death benefit
How to get Universal Life Insurance with Return of Premium Quote
Getting a quote for universal life with return of premium can be done instantly by using the quote form located on this page. If you’re ready to apply or have any questions please give us a call toll free 888-777-7574 so we can help you and answer any questions you may have about coverage.