Protective Life Insurance Company and West Coast Life Insurance Company have created new universal life policies that offer term-like, guaranteed premiums for periods of 10, 15, 20, 25 and 30 years.
Called Protective Secure-T and WCL Secure-T, the products offer built-in lapse protection, with the ability to extend coverage beyond the initial level premium period, according to the companies, which are units of Protective Life Corp., Birmingham, Ala. (NYSE:PL).
The Secure-T ULs come with a 61-day grace period. That’s twice as long as the grace period for traditional term products, the companies say.
Sample price comparison: For policies with the 25-year and 30-year guarantee periods, the premiums are 13% to 16% lower, depending on payment mode, than premiums for comparable traditional term life products, the companies say.
The policies are priced to offer “lower rates in most situations,” says John Deremo, chief distribution officer at Protective Life. The target market is “consumers and small business owners who need low-cost protection for a shorter period of time,” he says.