The Universal Life Insurance Issue

Universal life insurance made its red-carpet entrance into the insurance industry marketplace during the 1970’s. By the time the 1980’s-1990’s arrived, Universal Life Insurance had become a major player in the insurance world and, eventually made up ¼ of all life insurance policies purchased during this time, even for those living in and around Canby, OR. 

Universal Life Insurance Defined

Universal life insurance is a permanent, hybrid life insurance policy that combines the affordable characteristics of a term-life insurance policy with the savings available by a whole life insurance policy.

Universal life insurance, offered by Oliver Insurance, is designed to provide policyholders a “cash value” savings account that earns tax-exempt interest. The amount of interest earned depends upon the current interest rate environment.

Why Some Universal Life Premiums Are Soaring

We live in a true global economy. Interest rates began to their steady decline in the 1980’s, and then plummeted even further around the 2008 recession. As a result, the Federal Reserve reacted to the economic recession quickly. In response, they lowered the cost to borrow money, but ultimately, these reduced interest rates impacted all investors, even life insurers in Canby, OR.  

The Market’s Reaction

Understandably, universal life policyholders — many who were reassured by salespeople when they purchased their universal policy years ago, have reacted negatively to this cost increase.

Protecting Universal Life Policyholders

Regulator and consumer advocates alike, have been advocating to protect universal life policyholders (especially those with seasoned life insurance policies) from these soaring premium increases.  

Advice for Longtime Universal Life Policyholders

Try to stay ahead of the curve by:

  • Contacting your Oliver Insurance to learn how to determine your current policy’s cash reserves.
  • Working with your insurer to lower the policy’s death benefit, and thus, your costs, if possible.