Universal Life is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, and any other policy charges and fees which are drawn from the cash value if no premium payment is made that month. The insurer determines the interest credited to the account; sometimes it is pegged to a financial index such as a bond or other interest rate index.

Universal Life can also be designed as Secondary Guarantee Universal Life. Insurance companies have come up with a solution - to guarantee the insurance benefit on a universal life insurance policy even if the cash value in the policy goes to zero. This is known as a “secondary guarantee.” You agree to pay a premium that is often less than a whole life insurance premium and if you keep your payments up the policy’s death benefit is now guaranteed.

There are also new provisions where you can even pay a lower premium than the one that guarantees a policy, watch how it performs and thus possibly pay even a lower premium over time. If the policy doesn’t perform then you can make up the premium with what is called the “catch up provision.” You then deposit the back amounts that you would have had to deposit anyway.

Index Universal Life (IUL) An indexed universal life insurance policy gives the policyholder the opportunity to allocate cash value amounts to either a fixed account or an equity index account. Indexed policies offer a variety of popular indexes to choose from, such as the S&P 500.

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 WHOLE LIFE

Whole Life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Also, the insurance company generally keeps the cash values at the time of death, the death benefit only to the beneficiaries. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy.

Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the dividend option: Paid up additions is elected, dividend cash values will purchase additional death benefit which will increase the death benefit of the policy to the named beneficiary.

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The most common product when thinking of life insurance is term life. Term life insurance is simply coverage for a set period of time. Most products have level premiums and face amounts ranging from annual renewable term to 30-year term. Term life is the most economical of all life insurance with regard to cost. A twist to term life is Return of Premium term (ROP). ROP is still the same term life but priced higher because premiums may be returned at the end of the level term period income tax-free or the ROP amount may be forgone for a reduced-paid-up death benefit running to age 95.

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Vitality Life Insurance by John Hancock               

For the first time, your clients can protect the ones they love and be rewarded for living a healthy life.

Life insurance with the John Hancock Vitality Program can differentiate you in the market, help you grow your business, and offer clients a meaningful and affordable solution that can benefit them throughout their lifetime.

Vitality Overview

Life insurance with the John Hancock Vitality Program offers significant premium savings and rewards, while helping your clients live a longer, healthier life. It's easy to get started:
1. Accumulate Vitality Points
Clients earn Vitality Points by completing simple everyday activities to stay healthy, like going to the gym, getting annual health screenings, staying tobacco-free, and more!
2. Achieve a Vitality Status
Each year, clients earn a Vitality Status based on the number of Vitality Points they accumulate (Bronze – 0 points, Silver – 3,500 points, Gold – 7,000 points, and Platinum – 10,000 points).
3. Enjoy Savings and Rewards
The higher a client's Vitality Status, the more they can save on premiums and the greater their rewards and discounts.