Universal Life
Universal Life products with portability address varying employee needs for permanent life insurance and peace of mind for a lifetime. You have two Universal Life insurance options from which to choose: Universal Life & Universal LifeEvents with Long Term Care.
Option 1: Universal Life Insurance
Universal Life Insurance helps protect your family from money issues if you or your spouse pass away. Your price won’t increase due to age, and your policy builds cash value over time. You can choose a benefit amount that works for you, and use your cash benefit to pay for whatever you need most – for example, funeral costs, home payments, tuition, savings or any other bills.
Universal Life is an affordable way to help fulfill your responsibility to your loved ones and be certain they’ll be taken care of.
This option includes a death benefit that remains constant as long as premiums are paid, but it does not include a long term care benefit. Premiums are higher for this option because the death benefit does not reduce due to age. Cash value accumulation is also higher with this permanent life option.
Option 2: Universal LifeEvents Insurance with Long Term Care
Universal LifeEvents helps protect your family from money issues if you or your spouse pass away. It can also help pay for the high costs of longterm care services, and gives you a higher death benefit during your working years and a long-term care benefit that never reduces. Your price won’t increase due to age, and your policy builds cash value over time.
This option provides a higher death benefit during working years when the need for life insurance is typically the highest. Option 2 also includes a long term care benefit for home care, assisted living, adult day care, and nursing home care. The monthly long term care benefit equals 4% of the face amount for up to 25 months. Today’s population is more in need of long term care than ever before. Annually, more than 8.5 million people receive support for long term care services. A private room in a nursing home can cost $225 per day or $6,965 per month.
The following apply to both options:
- Convenient payroll deduction
- Flexibility to adjust the death benefit, premiums, and cash value as your needs change
- Ability to surrender coverage for the cash value or draw premiums from the cash value once accumulated
- Accelerated death benefit of 75% when life expectancy is 24 months or less
- Maturity date is age 100
Coverage Options
Employee and spouse coverage is available in $10,000 increments up to $300,000. Guaranteed issue coverage may be available. Child coverage is available up to $35,000 (depending on child age).
Employees are not able to elect both Universal Life and Universal LifeEvents with Long Term Care.
Issue Age Eligibility
| Universal Life | Universal LifeEvents with Long Term Care | |
|---|---|---|
| Employee | Ages 18 to 75 | Ages 18 to 64 |
| Spouse | Ages 18 to 70 | Ages 18 to 64 |
| Children | To Age 23 | To Age 23 |
Plan Comparison
| Item | Universal Life | Universal LifeEvents with Long Term Care |
|---|---|---|
| Level Life Insurance Benefit Regardless of Age | Yes | No. Death benefit reduces to 1/3 at the latter of age 70 or the 15th policy anniversary. |
| Cash Value | Higher Cash Value | Lower Cash Value |
| Long Term Care Benefit | Not Included | Included |
| Premiums | Higher than Universal LifeEvents with LTC | Lower than Universal Life |
Differences between Permanent Universal Life and Traditional Whole Life
- With Trustmark’s permanent universal life policies, you may change your premiums and death benefit at any time. With traditional whole life insurance, premiums remain level, and entire premiums are required to keep the policy in force.
- Premiums are generally higher for traditional whole life than for Trustmark’s permanent universal life options.
- Traditional whole life has higher guaranteed cash values than Trustmark’s permanent universal life options.
- Because the Trustmark permanent universal life premiums are generally lower, you can purchase a higher death benefit with the same premium dollars than traditional whole life.
