FFM - Universal Life

“The Universal Life landscape has not changed all that much since its inception. It's main components premium flexibility, competitive returns and guaranteed coverage keep this product at the forefront of the insurance industry.”

Mark R. Fielder
President, FFM, LTD.

The History

Universal Life (UL) can best be described as an interest sensitive life insurance program developed as a result of disintermediation challenges that faced the life insurance industry in the late 70's early 80's.

Prior to the introduction of UL policies, whole life insurance and term were really the only two games in town. However, when interest rates skyrocketed and mutual funds and money markets became the preferred choice of investing, whole life insurance (which was supported by suffering long term bonds and mortgage portfolios at the time) looked like a poor place to keep your money.

Money Out, Money In

As a result, dollars fled from whole life policies and the industry was forced to change in order to stay competitive. UL was born and now offered money market-type rates within the insurance company policy. This put the industry back into a competitive position for the consumer's dollar.

Hence, within a relatively short period of time, UL became an attractive concept for those preferring current competitive rates of return (with life insurance protection) versus long term bond or mortgage type yields seen in whole life policies.

Today

Although the market share for UL policies has decreased from better than 50% in the mid '80's to now less that 22% today, UL policies ushered in new generation of product features and wider flexibility never seen before from a very conservative, old line industry. However, it was the genesis for what we now see in today's marketplace.

Still Attractive?

You bet. Traditional, interest sensitive UL policies still play a very important role in today's financial world both for individuals and corporations. UL policies have important fundamental features and flexibility that fill many needs.

Whether it is for survivorship planning, estate planning, buy-sell agreements or the need for a guaranteed annual fixed yield without market risk UL still remains a strong product. Universal Life policies can be issued under a single life, joint life or group insured arrangements.

Action To Take

If you would like to learn more about Universal Life and receive a no-obligation quote,
please click HERE.

Attention Registered Users

If you have not registered yourself, please do so now. Registered users will be added to our exclusive BROADCAST E-MAIL LIST, which provides periodic electronic communiqués on the subject of new offerings, cutting-edge investing ideas and newly developed estate preservation strategies.

(Please note: your registration information will not be released to any other party without your express written consent)

Securities are offered through Girard Securities, Inc. member FINRA, SIPC.
Mark R. Fielder, Registered Principal. CA. Insurance Lic. # 0690576.