Provided by USAA Provided by John Hancock

What is universal life insurance?

John Hancock and USAA have teamed up to provide universal life insurance options that let you customize the timing and amount of your premium. Lifetime protection and potential for cash value accumulation give you the freedom to meet your needs today, plan for tomorrow and help protect your family.

Universal life insurance is a type of permanent coverage. Its features include:

  • Coverage that lasts a lifetime if premiums are paid.
  • Flexibility to increase or decrease coverage or payments.Changes to Universal Life Insurance premiums may cause the policy to become underfunded and potentially lapse. Make sure you consult with an insurance professional prior to making changes in your policy's premiums.,Universal life insurance coverage is designed to last as long as sufficient premiums are paid or enough cash value is maintained to cover the policy's monthly deductions.
  • Policies that have the potential to build tax-deferred cash value.
  • Potential cash value can be used to fund retirement, pay premiums and offset the cost of health care.Loans and withdrawals will reduce the death benefit and the cash surrender value, and may cause the policy to lapse. Lapse or surrender of a policy with a loan may cause the recognition of taxable income. Withdrawals in excess of the cost basis (premiums paid) will be subject to tax and certain withdrawals within the first 15 years may be subject to recapture tax. Additionally, policies classified as modified endowment contracts may be subject to tax when a loan or withdrawal is made. A federal tax penalty of 10% may also apply if the loan or withdrawal is taken prior to age 59 1/2. Cash value available for loans and withdrawals may be more or less than originally invested. Withdrawals are available after the first policy year.
  • Available with the John Hancock Vitality Program.

Why buy universal life insurance?

  • Flexible Payment Options

    Within certain limits, you can decide how much to pay and when. If you've built enough cash value, you may even be able to skip a few payments.

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    Adjustable Coverage

    You can decrease your coverage amount, and your monthly payment may go down as a result. You can't increase your coverage.

  • Cash Value Potential

    Part of your premium is used to build cash value with a guaranteed minimum interest rate or market index performance. You can choose to let it grow or withdraw it if you need it.

Is universal life insurance right for me?

If any of these statements apply to you, universal coverage might be a good choice.

  • I already have term insurance.

    Term policies are great, but they expire. You should consider adding permanent coverage to ensure you have adequate protection.

  • I'm about to turn 70.

    If you have a term policy that expires after you turn 70 and you still need protection to cover a mortgage, debt or burial expenses, a universal policy may be a good option.

  • I want a policy with tax advantages.

    Universal life insurance offers the opportunity to build tax-deferred cash value. You can also borrow against it. You won't pay taxes unless the amount you borrow is more than you've paid.The contents of this document are not intended to be, and are not, legal or tax advice. The applicable tax law is complex, the penalties for non-compliance are severe, and the applicable tax law of your state may differ from federal tax law. Therefore, you should consult your tax and legal advisers regarding your specific situation.

Explore our universal life insurance options.

Both policies feature a number of optional benefits, including the John Hancock Vitality Program, return of premiums and a critical illness benefit, among others.Some riders may have additional fees and expenses associated with them. Call for additional details.

Universal Life

Best for

Members seeking flexible premiums, a no-lapse guaranteeGuaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer. and:

  • Less risk.
  • A 1% minimum guaranteed interest rate.
  • Growth tied to a current credited interest rate.

Indexed Universal Life

Best for

Members seeking flexible premiums, a no-lapse guarantee and:

  • Moderate risk.
  • 0% guaranteed floor on annual index crediting.
  • Growth tied to a market index, subject to a maximum capped rate.

Still not sure if universal life is right for you?

Depending on your needs and goals, you may decide it's better to purchase one of our other types of permanent life insurance.

  • USAA Life Insurance Company and USAA Life Insurance Company of New York

    Simplified whole life

    This policy has fixed payments and a coverage amount that can be adjusted with major life events.The Life Event Option (LEO) rider is a benefit provided at no additional cost with the Simplified Whole Life (SWL) insurance policy. It allows you to request additional whole life insurance up to six times after specified events. Increases limited to amount of SWL coverage, with total coverage after increases limited to $1 million. Increases provided by additional whole life policies and require payment of additional premiums. Rider expires at age 45. SWL policy form: NWL99614NY 11-20; LEO form: NBR61208NY 08-06.

    Learn about simplified whole life
  • Provided by Mutual of Omaha: underwritten by United of Omaha Life insurance company, Companion life insurance company mutual of Omaha affiliates

    Guaranteed issue whole life

    This policy doesn't require health questions or a medical exam. You can buy up to $25,000 in coverage. It has fixed payments but is typically more expensive than simplified whole life.When comparing permanent policies on a "per unit" basis (the amount of premium required for each $1,000 of coverage), typically universal life costs the least per $1,000, simple whole life costs more, and guaranteed whole life insurance costs the most.

    Learn about guaranteed issue whole life

Have more questions?

Speak to a USAA representative at 800-531-LIFEThat's 800-531-5433, Monday to Friday, 7:30 a.m. to 8 p.m. CT.