Products like whole life and guaranteed universal life carry little risk to the buyer. Both types of coverage operate with guarantees that depend on the policy owner paying the premiums as agreed to and the insurance company’s ability to pay the claim. We can significantly reduce any company risk by choosing highly rated carriers.

Fixed universal life is generally less costly than whole life or guaranteed universal life. The tradeoff is that the policy owner has to assume some risk. Premiums can fluctuate with changes in the cost of insurance or the fixed interest crediting rate. Decreases in the crediting rate or increases in insurance costs will require more premium to maintain the coverage to a desired future time. Monitoring the policy’s performance is crucial to preventing policy lapses.