Universal Life Insurance

Universal Life Insurance — An insurance solution with options that adapt to your life


Universal Life Insurance — An insurance solution with options that adapt to your life

Universal life insurance offers permanent life insurance protection, not just for a specific period of time, and it provides potential cash values that grow tax-deferred. Universal life can be structured in a number of different ways, giving you flexibility in how premiums are paid, how death benefits are paid and how cash values may accumulate. (Premiums are the regular payments you make to the insurance company for the policy. The death benefit is the dollar amount that is paid to your heirs after your death. Cash value is the balance that may build up within the policy due to premium payments, interest or potential investment earnings.)

There are four different forms of universal life insurance policies, each with unique characteristics.

Gives you permanent life insurance protection – not just for a period of time.

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Ensure you have enough to protect your loved ones.

Fixed universal life

This option grows your cash value through a fixed interest rate. The interest rate is determined by the insurance company each year, and often will fluctuate from year to year.

Indexed universal life

This option provides death benefit protection and the ability to accumulate cash value. Indexed universal life provides the potential for a higher interest rate than a typical fixed interest rate. The interest rates are linked to the performance of one or more market indices. While you are not invested directly in a market index, your interest rate growth is tied to that market index’s performance. While your interest rate in this type of insurance may be higher than your guaranteed minimum interest rate, indexed universal life insurance is often more expensive than fixed universal life insurance.1

Variable universal life

This solution gives you the protection and tax advantages of universal life insurance with more control and risk over any policy cash values by selecting variable investment options from among the investment options offered by the policy. The variable investment options give you direct exposure to the investment markets through investment options, often called sub-accounts. If you want the protection of life insurance, but also want the potential for higher cash value accumulation, this type may make sense. Like all investment portfolios, your variable investment value will go up and down depending on the financial markets and the investment options selected, so account growth is not guaranteed. While your growth potential may be larger in a variable policy, it’s possible to lose part or all of your investment (which generally requires additional premium payments to maintain death benefit protection).

Survivorship universal life

Universal life can be purchased for your life or for two lives. Survivorship universal life insurance, also known as “second to die” life insurance, provides longer-term family protection. It’s based on the lives of two people—usually spouses—with death benefits paid at the death of the second spouse. It is an estate planning tool with benefits that may make it easier for heirs to meet estate taxes and other financial obligations.

Take the next step

Universal life insurance gives you the flexibility to design insurance coverage and investment opportunities that work for your lifestyle. To see if one of the universal life insurance options may be right for you and your family, speak to an ING Insurance Professional or registered representative today.

Before investing, carefully consider their need for life insurance coverage and the charges and expenses of the variable universal life insurance policy. Also consider the investment objectives, risks, fees, and charges of each underlying variable investment option. This and other information is contained in the prospectuses for the variable universal life insurance policy and the underlying variable investment options. You may obtain these prospectuses from your financial professional or by calling 877-253-5050. Please read the prospectus carefully before investing.

1This type of insurance can be more expensive than other types of universal life insurance. The interest crediting rate of a indexed universal life insurance policy is tied to a specific index and that the purchaser must select a crediting strategy. The crediting rate may be higher than the minimum guaranteed rate, based on the index performance, subject to any rate caps or participation rate caps. The index crediting strategy selected does not result in excess crediting interest. A policy may receive a contractual minimum guarantee interest rate, for example 1%.