With a Universal Life Insurance policy, say my premiums are $150.00 per month and I want to increase them to $250.00 per month, to increase the death benefit, will the death benefit be based on the date I originally purchased the UL or on the date I want to do the increase?
If I Increase Universal Life Insurance Policy Premiums, How Is The Increased Death Benefit Calculated?
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One response to “If I Increase Universal Life Insurance Policy Premiums, How Is The Increased Death Benefit Calculated?”
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It depends on the design of the policy. Universal Life Policies, issued in Canada, tend to be either a level death benefit or death benefit plus the fund value. If the policy is death benefit + fund and increases the premium then the death benefit would be increased by the fund (cash) value). If the policy is level death benefit the increase in premium will impact the fund value, however, not usually increase the death benefit.
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