Universal Life Insurance & Wealth Planning

If you’re thinking about the best ways to pass on your wealth to the next generation, Universal Life insurance can be a key part of your wealth preservation plan.

With a Universal Life policy, policyholders have the opportunity to adjust premiums and death benefits throughout the life of the policy. When considering how to protect your legacy in the most efficient way, Universal Life insurance has many benefits.

A Universal Life insurance policy can help you with:

• Liquidity planning
• Asset protection
• Estate equalisation
• Debt protection  
• Equalisation of the family business or estate.

Other benefits

• It can be collateralised for a loan with most banks.
• Low-risk asset class.

How does universal life insurance work?

There are two elements to the premium:

Cost of insurance

As it sounds, the cost of insurance is the cost of keeping the policy active. In this case, that means the premium payments directly associated with the risk (in this case, your mortality) and policy administration.

This element is the minimum you can pay to keep the policy alive.

The cost of insurance is calculated in line with the insured’s age, which means, over time, it will naturally rise.

Cash value

As you can dial up or dial down your premiums, many clients choose to pay more in premiums while they are younger, in order to reduce payments later in life.

This approach leans into the insurance company’s core competence as an investment house. You are effectively saving with them in a low risk investment in order to cover a growing liability – the cost of life insurance in older age*.

As with all investment products, capital is at risk.  

Other premium options

• Single lump-sum premium
• Fixed scheduled premiums

Your choice here depends on your individual circumstances and what you need to achieve. Your Howden broker will be able to offer tailored advice. Let’s talk.

Many of our clients are

• Property developers
• Businessmen
• Lawyers
• Doctors