Happy New Year……The Cost of (Some) Life Insurance Just Went Up

In the last decade, one of the most popular life insurance products has been the no-lapse guarantee universal life policy (note: for a white paper that explains the different types of life insurance go to http://www.youritm.com/Sites/17/docs/WP_MikeBrohawn.pdf).  With its low cost, guaranteed death benefit coverage over the lifetime of the grantor/insured, this product was tailor made for the TOLI market where the focus is usually on death benefit, not cash value. Because of this focus, the fact that these policies did not generate significant cash value was irrelevant for most people, and the death benefit guarantees made them very attractive, delivering the most bang for the buck.