Term Universal Life Insurance is the concept of combining the guarantee of a term product and the flexibility of a value-earning product is not new.  Since it’s inception it has gone by other names like, Cash Value Term and more recently, Term Universal Life.  Unlike its predecessors, the new Term and Universal Life hybrid provides guarantees for both premium and the death benefit for a specific period of time ("term") generally ranging from one to 30 years

UL Flexibility – When illustrated, the guaranteed premium is typically determined using a Level Guarantee Solve, which creates just enough cash value to maintain the policy status.  However, if funded beyond the level guarantee, like all universal life policies this product will also allow for partial withdrawals from cash values and low-interest borrowing.

Term Pricing – Don’t be mistaken, this is not priced like a Universal Life product, in fact, premium costs are in-line with a carrier’s term product and in some cases can be a less expensive alternative to a traditional term product. 

Imperfect Timing Forgiveness – For the purpose of determining whether the death-benefit guarantee is in effect, payments are applied as of the first of the month yet are credited to Policy Value as of date received.  As a result the product can offer a death-benefit guarantee that can keep the policy in force even if policy values do not.

Continuing Coverage – subject to certain limits, the product does allow for the death benefit to extend beyond the initial period (term) selected.