TERM INSURANCE WILL LAPSE.

Term insurance protects you for a term of10, 15, 20, or 30 years. At the end of the term, coverage ends. But you should not feel bad about this because, congratulations, you will have survived. Term insurance is designed to provide the maximum death benefit for the lowest monthly premium. It does not expend any money building cash value.

UNIVERSAL LIFE INSURANCE IS DIFFERENT FROM TERM INSURANCE.

Universal life insurance has a term component and a cash component. It will build cash value. However, it will use the cash built up to subsidize the term insurance component of the policy as you age, when the cost of term coverage rises, and thus extend the duration of the policy. However, some universal life insurance policies can lapse. This is because some universal life policies pay a variable interest rate. If the interest rate drops, there will not be enough earnings to support the term component of the policy. The policy will then lapse. 

NO-LAPSE UNIVERSAL LIFE INSURANCE WILL NOT LAPSE.

No-lapse universal life insurance is the solution. It carries a guarantee that if the target payment is paid continuously, it will not lapse. The no-lapse clause can extend for 10 or 15 or 20 years or more. Or you can get a lifetime no-lapse clause, and the policy will never lapse. What this means is that although you will not be able to capitalize on he policy by taking cash out, as you can with equity indexed universal life insurance, your beneficiary will definitely receive the face value of the policy. All you have to do is keep making your payments until you die.

No-lapse universal life costs more than term insurance but less than equity indexed universal life insurance.

No-lapse universal life insurance is often the best choice for clients over 50. Term insurance rates start to become unattractive at that age, and the terms offered drop from 30 year down to 20 and 15 and even 10 years. The client will be paying a relatively high premium for a policy that they might outlive.

No-lapse universal life is the solution: Although the premiums are higher than for term insurance, the client can be sure, as long as he pays the premiums, that his beneficiaries will receive the face amount of the policy someday.

EQUITY INDEXED UNIVERSAL LIFE INSURANCE IS DIFFERENT FROM UNIVERSAL LIFE.

Equity indexed universal life insurance is designed to build cash value. However, the premiums are higher than for term insurance and for universal life insurance.