[...] In a reminder that Universal Life insurance (a form of permanent life insurance) premiums are not fixed, a recent class action lawsuit in CA ended with a federal judge ruling that Conseco Life Insurance Co. cannot triple premiums for 50,000 policy holders who have had their policies since the late 80s and early 90s. The courts got involved because the proposed premium increases were so significant, but the complexities of universal life insurance include a lot of flexibility in terms of premiums. [...]
One of the advantages of permanent life insurance is that there are all sorts of riders that you can purchase along with the policy. Two that could be particularly useful are available through The Hartford: The LifeAccess rider and the Disability Access rider. The LifeAccess rider aims to take the place of a long term care insurance policy for people who have life insurance but not a separate long term care policy. The Disability Access rider provides a safety net for people who don’t have short term disability insurance coverage (the rider does not provide long term disability coverage). [...]
[...] For some people, the benefit is worth it. But for most of us, it makes sense to buy a term policy and keep our investments separate from our life insurance. But either way, the Consumer Boomer article provides a good summary of how the various types of coverage work. If you’d like to get quotes for your particular life insurance needs, we’re be happy to help.