Which of the following UL death benefit options would BEST suit her needs?

Aaliyah is a 37-year-old account manager at a large pharmaceutical company. She earns $300,000 a year plus bonuses. She meets with Theo, an insurance agent, to review her life insurance needs. Theo deduces that Aaliyah needs a $250,000 universal life (UL) insurance policy. Aaliyah agrees but states that she wants to keep her premiums low.

Which of the following UL death benefit options would BEST suit her needs?
A . Level death benefit.
B . Level death benefit plus account value.
C . Level death benefit plus cumulative premiums.
D . Indexed death benefit.

View Answer

Answer: A

Explanation:

A Level death benefit option provides a fixed death benefit and is generally the least expensive premium option in Universal Life (UL) insurance. Since Aaliyah wants to keep her premiums low, this option best aligns with her needs. Other options like the death benefit plus account value or cumulative premiums increase the cost, as they provide a growing death benefit based on the policy’s cash value or premiums paid. Therefore, Option A will help Aaliyah maintain lower premiums