At TMA Insurance Trust, it is our role as your advocate to advise members when an important issue arises so that you are truly protected. In this week’s blog we provide a historical perspective on Universal Life and what can happen when you are not fully educated by an advisor who is not fully informed or not putting your interests first.

Universal Life

Universal Life Insurance was a popular option in the 1980s and 1990s. Policyholders were buying into the promise of a life insurance benefit plus an investment return on the premiums paid. At the time these policies were being sold, investment options were thought to be lucrative enough to cover the returns outlined in the policies. Now, decades later these carriers are finding it difficult to provide the anticipated returns to policyholders due to the current investment environment.

As a result, affected policyholders have been left to deal with large premium increases or a reduction made to their investment accounts to cover these premium increases. The retirement nest egg they planned for is now threatened and their death benefit has been decreased.

In retrospect, many of these policyholders may not have been fully informed about the risks involved and the policies were bought by people who could not afford this loss.

Dependable Life Insurance

When it comes to life insurance, having solid, dependable coverage is a vital component to the foundation of any family’s financial portfolio. More unconventional policies have their place, but only after you are confident that a secure death benefit will definitively protect your loved ones. For example, term life insurance is pure protection without extras; no exorbitant premiums, management fees or hidden costs. You’ll have straightforward coverage that you can count on.

Even so, buying the correct type of coverage and amount of insurance can be tricky. It helps tremendously to have expert guidance when choosing your life insurance policy; whether the right choice is term, whole, or universal. Fortunately, as a TMA member, you have that help ready and waiting — whenever you need it.

When was the last time you had your life insurance policy reviewed? Has your income and/or family situation changed since you purchased insurance? Now may be the right time to speak with a TMA Insurance Trust advisor. Together, we can review your current life insurance policy and be sure you have the most appropriate coverage for your situation. Your life insurance policy needs to be reviewed periodically to be sure the future of your family is protected with coverage you can trust.

For over 60 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.