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From: afb3@hou2d.UUCP
Newsgroups: net.invest,net.consumers
Subject: Re: Universal Life
Message-ID: <530@hou2d.UUCP>
Date: Mon, 8-Apr-85 10:56:02 EST
Article-I.D.: hou2d.530
Posted: Mon Apr  8 10:56:02 1985
Date-Received: Fri, 12-Apr-85 04:05:30 EST
References: <367@ihu1m.UUCP>, <584@houxu.UUCP>
Organization: AT&T Bell Labs, Holmdel NJ
Lines: 49
Xref: linus net.invest:559 net.consumers:1577

I have an interesting mix of all the mentioned insurance types
including the following:

	1)	Whole life (20% of insurance plan)
	2)	Universal Life (about an equal amount to whole, 20%)
	3)	Term (40% on plan)
	4)	Accidental (not part of basic plan.  I figure that if
		I get bumped off traveling for my company or in the
		insanity of the New Jersey/New York highway system, my
		family deserves a wind fall.
	5)	"Savings" (20% of program.  Real savings should be part 
		of any good "insurance" program!!!)

As I suspect with most people, I bought Whole Life when I was young
and foolish.  Thats not to say that I consider it that terrible a move,
but it is expensive.  My "Universal life" was purchased for an 
interesting set of reasons (about two years ago), which include:

	1)	For roughly 50% more preimium I get 2 1/2 times the
		insurance I got with the same company as whole life.
	2)	In 6 years the premiums vanish (and unless the interest
		rates reaaly tumble, they stay vanished).
	3)	My existing policies with that company have sufficient
		cash value to allow me to "borrow" the premiums to keep
		the policy in force while I'm paying the Universal
		life premiums (only diminishing the death benifit by
		the small amount of the cash value loan outstanding).
		After the 6th year I can resume my whole life payments
		with all my policies in place.
	4)	Like "whole life", this insurance remains in force until
		I choose to stop it (no renewal BS).

All in all, I thought the "Universal" option pretty reasonable.  At the
time I purchased it, it seems to have nearly the cost advantage of the
term option (given a reasonable and probable rate of return) but 
retained some of the important "features" of Whole Life (IE. 
permanance).

I would be VERY interested in how the Government views Universal life.
As it appears, others seem to have knowledge of this.  Comments??


Al Baldwin
AT&T-Bell Labs
...!ihnp4!hou2d!afb3


[These opinions are my own....Who else would want them!!!]