Universal life insurance policies were the life insurance industrys first answer to the proponents of buy term and invest the difference. Adjustable premium life insurance is a popular name for universal life insurance because you can adjust the premiums up or down. The product is designed to give the policyholder the ultimate in flexibility and options. This can cause great difficulty when trying to compare Universal life insurance rates because you can start a policy with a range of premium options.

Flexible Premium Options

1. The Target Premium This is the recommended premium to keep the policy in force until age 95 or 100.

2. The Minimum Premium This is the lowest permissible premium that you can pay but will not be enough to keep the policy in force all your life. Some people start with this and adjust the premium higher later.

3. Over Funding The over funding premium concept allows you to pay more than the target premium and also adds to the cash value increase.

The comparison shopper must be aware of these premium options. Ask for the target premium when you are comparing universal life insurance. That way you will be on a level playing field from company to company.

There is also what is known as the cost of insurance index. This is available on most life insurance company quotes. This index will give you the rate per thousand dollars of insurance. You may want to compare the cost of insurance from one company to another.

Universal life insurance is a marvelous product but its flexibility can also make it very complicated. Look at several illustrations of universal life insurance and compare the cash value accumulation to age 65 and beyond. There will be a guaranteed interest rate and an illustrated interest rate comparison on all of your illustrations. The guaranteed rate is the policys guaranteed accumulation interest rate and the illustrated interest rate is what the company is currently crediting the cash value accumulation.