Curious about how we’re making life insurance work better for you? Find all the latest news, articles, and more—right here.

Once you understand the benefits, it’s easy to see why DIY financial planning-types choose universal life insurance. Read the fine print, though, and you’ll see that not all policies are the same.

We believe Everly Life1 isn’t just different. We believe it’s better.

Your Everly Life payments include just two charges: your cost of protection and an $8 per month service fee.

Several fees common to the life insurance industry have been eliminated: 

No Sales Loads 
Some insurers charge “sales loads” that cover the costs of agents, underwriting, and processing.  You won’t find those sales loads in Everly Life.   

No Withdrawal Fees 
Some insurance companies charge for accessing your own money. Not gonna’ see those charges in Everly Life either. 

No Surrender Charges 
If you decide to cancel your policy, most insurers charge a fee. Yep, you guessed it.  Not Everly Life.

Everly Life gives you control over your payments. After the initial set-up payment, you decide how much and how often (monthly, quarterly, or even annually) to pay, just make sure your Account Value is sufficient to pay the monthly charges. Subject to some rules2, throughout the life of your policy, you have the power to adjust your payments as your life or financial situation changes.

Add lump-sum amounts, like a work bonus or inheritance

For the first year of your policy, your interest rate is 4.0% guaranteed.3 Afterwards, the rate may change, but no matter what happens in the market, the rate for your Everly Life will always be at least 1%. When it comes to long-range accumulation, remember the story of the turtle and the hare: “slow and steady” wins the race.

Industry-Leading Critical Illness Benefit

In states where available, Everly Life includes a Critical Illness benefit with two tiers of benefits—it’s the only one of its kind on the market today. If you’re ever diagnosed with a Critical Illness4, Everly Life gives you the power to accelerate some of your death benefit, and receive a portion of this amount based in part on your life expectancy.  It’s another way that Everly Life is Made for Living. You can use the money you receive during your life. Replace lost income if you can’t work. Pay medical expenses. Hire a home health aide, housecleaner, dog walker, or landscaper. You are free to use the funds any way you like.   

Simple and direct. No intrusive medical exams.  Just answer some medical questions.   Everly Life is designed to be user-friendly, with you comfortably at the center and confidently in control.

Only Everly Life Does Life Insurance Like This

Universal life insurance combines the comfort of insurance protection with the financial firepower of tax-deferred savings. Everly Life makes life insurance easy-to-understand and even easier to manage. With a direct-to-you model, every policy is simple, flexible, and customizable. Best of all, the payment match and current interest rate sweeten your growth potential.

Universal life can be a powerful tool for good. The extra benefits of Everly Life make it a true industry stand-out.

1Everly Life is offered through Everly and issued by Security Benefit Life Insurance Company.

2You can make additional payments if the payment (i) is at least $1, (ii) does not increase the net amount of risk, and (iii) will not cause your Everly Life to fail to qualify as life insurance. Paying too much into your policy may cause it to become a Modified Endowment Contract (MEC). Once your policy becomes a MEC, it will always remain a MEC and may have tax implications. Decreasing or skipping payments may impact your Account Value and credited interest. Decreasing payments may impact how long your policy remains active. To learn about the rules for changing your coverage amount or payments, see please visit Can I adjust my coverage amount and Can I adjust my monthly payment.

3The interest rate can be changed and may change before you buy your policy. The interest rate is set in Security Benefit's sole discretion.  To learn more about how the interest rate is determined, please visit What Interest is Credited to My Account Value.

4Qualifying Critical Illnesses include heart attack, stroke, cancer, kidney failure, and paralysis. Not all conditions will qualify.  For more information about this policy rider, please click here.

Once you understand the benefits, it’s easy to see why DIY financial planning-types choose universal life insurance.

Better Universal Life Insurance: Meet Everly Life™

Getting life insurance through your job is a great benefit, but for most people, it might not be enough to cover their needs. The fact is, most employer-provided life insurance policies are generally insufficient when it comes to coverage amount, long-term support, and flexibility. To stay on the safe side, it might be better to buy your own private policy instead.

Today, fewer employers are offering life insurance to their employees through group plans—the numbers have steadily declined over the past decade or so. (Just over half of those who work for private American companies have employer-provided life insurance.) 

Also, group life insurance coverage only lasts while you’re employed with the company. If you leave for any reason, there’s a chance it could disappear. That can potentially put you and your loved ones at risk if you change jobs or get laid off. After you’ve calculated your financial obligations, the group policy simply may not be large enough for you. Your employer might supplement the cost of your life insurance; however, they might not. Additionally, you might find a better deal by shopping around on your own (and getting the coverage you need).

If you’re lucky enough to work for a company that does have employer-provided group term life insurance, that’s great. But before you take advantage of this valuable perk, there are some important things to consider:

How much insurance do I actually need?
Perhaps more than you think. It depends on your current financial situation and upcoming financial obligations, but most employers offer only very basic coverage. (Many top out at around $100,000.)

Take time to carefully consider all of your financial obligations including your mortgage payments, education expenses, retirement goals, and other finances that your loved ones would need to pay for in your absence. See details about figuring out your financial obligations in this article.

A common approach is to buy five to ten times your income in life insurance—but you may wish to consult a financial planner or advisor to talk through your unique needs, goals, and circumstances to determine what’s best for you.

Can I have more than one life insurance policy?
Sure. You can get more details about this in our post on having more than one life insurance policy. Buying additional coverage can be a good way to cover debts and give your loved ones a financial cushion – so they can keep growing towards their life’s aspirations.

How can an additional life insurance policy help supplement employer insurance? 
Once you’re had a chance to calculate how much life insurance you need to feel confident your loved ones are financially protected, take another look at your employer provided life insurance.  If the life insurance provided by your employer covers your financial obligations and aspirations to protect your family, you’re set!  If, however, you see a gap between what you believe you need and what your employer provides, search for supplemental life insurance options that will help you – and your family – live confidently knowing that even if life hits the fan, your loved ones will be financially protected.


Got questions? Reach out and chat with us! Or give us a call at 855.290.0529.
At Everly, we’re here to help. 




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

Getting life insurance through your job is a great benefit, but for most people, it might not be enough to cover their needs.

Why You Might Want to Boost Your Employer Provided Life Insurance

Simply put, part of each permanent life insurance premium payment you make can be placed  into a specific bucket that can grow over time.  This part of a permanent life insurance policy is called the cash value. If you cancel a permanent life insurance policy, you'll receive the cash surrender value. The amount of your cash surrender value is equal to the policy’s cash value, minus any outstanding loans and fees you owe your insurer. 

Does term life insurance have a cash value?
Not all kinds of insurance have cash value. Term life insurance, for instance, does not. The great thing about term life insurance is that it pays out a death benefit to your loved ones if you die during a set period of time (typically between 10 and 30 years), but it won’t grow in value and typically ends once the set period of time is over.

What about whole life insurance or universal life insurance—do either of those have a cash value
A whole life policy does have a cash value. So, over time, as the cash value accumulates, you can decide whether you’d like to withdraw funds or borrow against the cash value of the policy. 

The same is true of universal life insurance.  You can protect your loved ones through the life insurance portion of the policy, plus the amount of your cash value can earn interest over time.

What’s the difference between “cash value” and “cash surrender value”?
As you pay your life insurance premiums, cash value can accrue, and the insurance policy’s account value is credited interest. If you’d like to use your cash value, you’ll have to take out a withdrawal, borrow against it through a loan, or simply cash out by ‘surrendering’ your policy. Note that when you borrow against your cash value, you’ll repay the loan with interest.  Also, if you take a withdrawal from your permanent life policy, you’ll most likely reduce your death benefit by the amount of your withdrawal. However, some companies allow you to take a withdrawal up to a certain amount without an impact to your death benefit, so ask your life insurance provider a few questions to see how accessible the cash value can be before making your final decision.

If you decide to cash out, you “surrender” the policy, and that might result in surrender charges. The remaining balance is all yours. (Pro tip: look for a life insurance provider that doesn’t apply surrender charges in the event that you cancel your policy.) 

If this still sounds a bit confusing, reach out to an expert at Everly, and they can walk you through your options and potential implications.  You can start a chat or contact one of our experts live at 855.290.0529 Monday through Friday between the hours of 7am – 5pm Central.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

What exactly is cash surrender value within a life insurance policy?  Find out more here.

Life Insurance Cash Surrender Value: Everything You Need to Know

Millennials are proving to be deeply invested in caring for their loved ones. They’re also becoming more interested in establishing life insurance plans for themselves – especially as global health concerns have risen over the past few years. Historically, this hasn’t been the case as Millennials have been one of the least insured generations. 

So why haven’t more millennials bought life insurance until now?

Traditionally, life insurance has been a hassle to purchase. For many policies, you have to work with a commissioned broker, submit medical exams or blood tests, and fill out old-fashioned paperwork. It can be a tiring and tedious process—and Millennials leading busy lives at work and at home simply haven’t had the time to deal with it.

Also, some Millennials are put off by the fact that term insurance has no cash value if you outlive your policy. Simply “renting” life insurance for a certain number of years, and essentially handing it over to the life insurance company after the term ends and the policy expires doesn’t seem like an appealing option to some.

The good news is, the life insurance industry is evolving faster than it ever has, and life insurance companies are improving their service and offerings to meet the needs and preferences of savvy, online shoppers. The goal? To make the process of obtaining life insurance seamless, personalized, and more accessible than ever before.

The advantages of Millennials getting life insurance now

As you may know, it’s easier to be approved for life insurance and qualify for better rates when you’re younger. As you age, insurance rates go up and policies can get harder to be approved for. 

There are different types of life insurance available, and generally fall into one of two categories: term life insurance and permanent life insurance.  (You can read more about the differences between the two here.) One of the more innovative options is universal life insurance.  This type of life insurance provides protection as well as an ability to place money into the policy’s “account value.”  The account value can grow tax deferred and can be used for a variety of things you may need when you’re older.  (Like health care, a special anniversary trip with your family, etc.) 

Millennials are in an excellent position to be able to get lower rates on their life insurance, while being able to take advantage of compounding interest as they set up their financial futures.  Some companies are now offering universal life insurance online without all the historic hassles.  This can make universal life insurance an excellent option to meet the needs Millennials are looking for.  

Got questions? Reach out and chat with us! Or give us a call at 855.290.0529.
At Everly, we’re here to help. 




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

Millennials are in an excellent position to be able to get lower rates on their life insurance, while being able to take advantage of compounding interest as they set up their financial futures.

Life Insurance For Millennials: Why It Matters

The decision to get life insurance is deeply personal. Generally speaking, people purchase life insurance when they have a major financial obligation, or a loved one they want to ensure remains financially protected in the event of an unexpected life circumstance or even death. 

What financial events might you want to ensure are covered?  Typically, people want to ensure their loved ones can afford payments for college tuition, a mortgage, and childcare expenses. But there are many other expenses, including funeral costs, that you might also consider. Even if you’re single, there might be some key people in your life you’d want to take care of financially after your death—such as your parents, especially if they’ve been financially help you.

Above all, make sure you choose a policy you can afford, and one that meets your needs.

How much life insurance should you have?
Great question. Take inventory of your current financial situation: how much money do you have now, and what expenses are you responsible for? Got any significant expenses coming up? Start by assessing your income, and then add up all your future debts, expenses, and big-ticket items, such as a mortgage. 

The answer to how much life insurance you should have will likely change over time. For instance, you should revisit your coverage if have your first – or an additional – child, take on major debt, or undergo a huge life change. Whenever your financial obligations increase, you might take a look at your life insurance coverage because you may need more insurance than you signed up for initially. The key thing to remember is making sure you have enough life insurance for your current life stage, and an amount that aligns with your financial plan.  You can learn more how much life insurance you may want to consider owning in How Much Life Insurance Do I Need.

Naming a beneficiary for life insurance
As always, think carefully about all the people in your life you might want to protect. People often purchase life insurance to protect spouses and children, but you may also want to financially protect your parents, siblings, or even a business partner. Some life insurance policies allow you to name a trust and leave a legacy for a program that’s especially meaningful to you. Generally speaking, you can name a person, business, or charitable organization as your primary beneficiary.  As always, double check with your life insurance company to see what options they provide for designating beneficiaries.

How long should the term of my life insurance be?
Generally speaking, you should look for a policy that covers the duration of your financial obligations, or a lifelong policy that’s flexible so you can use the money you’ve placed into the policy for future expenses. Rates for protection are generally lower when you’re younger and typically at your healthiest stage of life. If you choose to purchase a universal life insurance policy when you’re younger, you’ll also have more time to place money into the cash value of your policy—which can build more interest over time.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help. 




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

Knowing when to purchase a life insurance policy can provide you with the confidence that your financial future is secure.

Buying life insurance to protect loved ones can be a very smart financial decision. Typically, married couples and domestic partners have a couple of options when deciding who might receive a death benefit from life insurance.

One option is to name your spouse as the primary beneficiary on an individual policy, and in the event of death, your spouse will receive the death benefit payout. 

Another option is to purchase a joint life insurance policy, which can cover both of you.  This option is usually for estate planning, or when one spouse can’t qualify on their own. This kind of policy ensures that the surviving spouse, as well as the beneficiaries, aren’t left with devastating financial burdens. A joint life insurance policy can be helpful in replacing lost income or services due to the unexpected death of a spouse. 

How much coverage should spouses get?

You should evaluate your current assets and long-term expenses such as childcare, college tuition and your mortgage payments, and make sure the death benefit covers everything sufficiently. Even for life insurance policies that cover a non-working spouse, you should take into account expenses like childcare that would need to be covered in their absence. Make sure you consider everything carefully so that you’ll have enough coverage to give you both peace of mind.

Joint life insurance policy

A joint life insurance policy is usually a permanent policy that lasts for the lifetime of the couple, as long as you keep paying your premiums. 

In a first-to-die policy, a surviving spouse receives the death benefit upon the death of the first spouse. In a second-to-die policy, the death benefit is provided to the beneficiary only after the deaths of both spouses .  This option is often used with Trusts.

Joint life insurance can be a little more expensive.  However, for some people, it may be their best option – especially in a situation when one spouse has health conditions that prevents them from qualifying for life insurance on their own. If this is your situation, then joint life insurance is worth considering.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help. 




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

Buying life insurance to protect loved ones can be a very smart financial decision.  Learn more about life insurance for your spouse here.

Life insurance companies charge a range of fees that can make a policy more expensive in the long run. It’s important to understand the fees you may be charged for life insurance, so you can compare and find the best fit for your needs when you’re shopping.  

Typical industry life insurance fees include:

Cost of insurance (also known as COI)
This is the actual amount you pay for protection coverage.

Mortality and expense risk charge
This may also be called a monthly-per-thousand charge.  This is a fee that life insurance companies may charge to ensure they collect all the money they expected to earn on your life insurance policy, just in case you don’t live as long as expected. When a company issues your policy, they estimate that you’ll live until a certain age.  They base the calculation on factors such as your age, gender, lifestyle behaviors, etc.

Surrender charge
This is a fee that’s normally deducted from the cash value of your policy if you cancel (or “surrender”) your life insurance policy.  There may be a defined amount of time called a surrender charge period when you may be assessed this charge if you cancel your policy.

Sales load charge
This refers to a commission paid to an agent or broker for selling you the life insurance policy.

Administration fees
These are the bookkeeping and accounting fees for managing the value of your account.

Fund Management fees
These fees are paid to fund managers who manage the money in a policy’s account value.  The fees compensate them for the work they do.

Do some digging when shopping for life insurance to ensure the company is transparent about the fees associated with your life insurance premium.  You might find a better price by discovering a life insurance company that charges fewer of these fees.  And as always, the more you know, the more confident you’ll be that you made the right choice for your situation. 


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help. 




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

It’s important to understand the fees you may be charged for life insurance, so you can compare and find the best fit for your needs when you’re shopping.

With life insurance, there’s no set price that fits everyone who applies for coverage. Certain factors can raise or lower your costs. 

When you get an estimate or quote for life insurance the insurance company considers a number of different factors to calculate pricing. The amount you pay for your insurance is called the life insurance premium. Although the process of applying for coverage can seem confusing, we’re here to demystify the process for you. That way, when you shop around (and you should!) to compare pricing and coverage, you’ll have a better understanding of how rates are determined. 

Here are some factors that may affect life insurance pricing:

Amount of Life Insurance Coverage
In general, a policy that provides a $1 million payout will be more expensive than one that provides a $100,000 payout. Also, there are different price ranges for the kind of insurance you select (such as term, whole, or universal life insurance). Make sure you understand the different types of coverage and each of their distinctive benefits.

Your Age
This can be a leading factor impacting your life insurance premium. Are you younger? Your premium likely will be lower. As you get older, coverage becomes more expensive because of the increased likelihood that the insurer will have to pay out your policy. Insurers use common statistics on mortality and age to determine their rates.  (If you’re interested in what a table like this can look like, check out the Social Security Administration’s actuarial life table here.)

Your Gender
On average, women tend to live longer than men. So, with the higher life expectancy, women typically pay less for life insurance than men do.

Your Health
Before issuing a policy, some insurers look at online medical records, while others require in-person medical exams and blood tests. Applicants with fewer health issues will generally get lower premiums. If you have a history of medical issues, such as cancer or heart disease, your premiums will be higher. 

Your Family Health History
Even if you’re healthy, with no chronic medical conditions, a family history of health issues (especially hereditary) might increase the cost of your coverage.

Smoking
Smoking isn’t just bad for your health; it can also increase how much you pay for your life insurance coverage. In general, smokers pay more due to greater health risks and higher mortality rates from potential diseases such as lung cancer. You might be able to reduce your rates if you quit smoking—and if you’ve already quit, congrats! It’s worth mentioning this to the insurer and asking if being a nonsmoker will lower your rate.

Personal Information 
Insurers use third party data, such as your credit information, driving record, and any criminal records to determine your potential risk factors and adjust the premiums accordingly.

Additionally, some professions and hobbies are considered riskier than others. (Knitting is safer than being a race car driver!) If your job involves something like roofing or being exposed to hazardous chemicals, your coverage could cost more.


So, is there anything you can do to lower your premiums? 
Making some lifestyle changes might help: quitting smoking, losing weight, and making other changes to lower your blood pressure and cholesterol are potential areas to focus on that might help you get the policy you want at a price you can afford. Plus, you’ll simply be healthier!


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help. 




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued 

With life insurance, there’s no set price that fits everyone who applies for coverage. Learn more about factors that can raise or potentially lower your costs.

Life Insurance Prices: What You Should Know

If you’re checking out permanent life insurance options and you keep wondering what the term “life insurance surrender charge” means, check out the simple explanation below.

So, what exactly are life insurance surrender charges?
Life insurance surrender charges are fees deducted from your cash value when canceling your life insurance policy. Surrender charges are typically used to recoup the acquisition cost paid to a life insurance agent.  Historically these fees have been a hurdle that keeps people from canceling their permanent life insurance policy. A surrender charge is also sometimes known as a “surrender fee.” There’s a set period of time in which these charges apply—and after that time has passed, the surrender charge typically goes away.

How long is the life insurance surrender period?
Many insurers charge these surrender fees for a set number of years. The surrender charge is typically highest in the first few years of the policy, and then it decreases each year afterward. Some surrender fees can extend through the first 10 years of the policy, or even longer. If you have a life insurance policy with a surrender charge, you should consider holding onto your policy long-term. That way you can avoid paying these fees.

How much are surrender charges?
It depends on the policy, the insurer, and the state where you live. Usually the surrender charge is a percentage of your cash value, rather than a fixed fee. Some policies have a graded scale where it’s a higher percentage—such as 7% or 10% in the first few years—and then it lowers annually. Some states cap the amount that the surrender charge can be.

Pro-tip: dig deep and ask your life insurance agent or company if a surrender charge will be applied to your permanent life insurance policy.  With a refreshing amount of pricing transparency that’s now entering the life insurance industry, it’s possible to find permanent life insurance options that have reduced – or even zero – life insurance surrender charges.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help. 




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

If you’re checking out permanent life insurance options and you keep wondering what the term “life insurance surrender charge” means, you can learn more here.

Great news: your life insurance policy may provide you with tax advantages that are very attractive. We’ll explain how.

Universal life insurance policies have a cash value component from the money you contribute above your protection cost and admin fees. This money grows with interest over time, and it’s yours to tap into when you need to—for any reason. 

If your financial plans change, like when a child finishes college, you can use money from your account value, tax-free in most cases. 

This is one of the advantages of universal life insurance vs. term life insurance. As you pay your universal life insurance premiums, cash value can build up over time as you continue to pay into it—and that money grows without the IRS taking any of it. Since the interest earned isn’t subjected to taxes and can often be accessed without incurring taxes, the cash value can serve as a helpful nest egg for future needs, whether planned or unexpected. 

You can take withdrawals from a universal life policy's account value (another name for cash value) up to the premiums you paid tax-free. You can take these "withdrawals" on anything you pay into your account. Legally, this is called "return of premium" and it isn't taxed because the dollars you paid in already were taxed at some point.

One important note: if you choose to withdraw money, you’ll reduce the protection for your loved ones and your policy might even essentially end, depending on how much you withdraw. You probably would want to carefully consider all implications of any withdrawal to ensure you’re continuing to satisfy your original intent in purchasing a universal life insurance policy. 

That’s why some companies may place limits on how much you can withdraw and borrow without fully "surrendering" your policy. It’s essential to find out what these limits are before you take money out.

Interest on your cash value contributions

The cash investment portion of your universal life insurance grows tax-deferred (just as a traditional IRA does.) That means when the money is withdrawn, taxes must be paid on the interest earned above the cash basis.

For example, let’s say you paid $225,000 in premium and your policy has a cash value of $250,000 - of which $200,000 is your contributions, plus $50,000 of interest. If you make a withdrawal of all $250,000, you’ll have to pay tax on $25,000 in interest (the other 25,000 are a return of premium). Additionally, taking all the money usually means surrendering your policy and losing your death benefit. 

Alternatively, you can take a loan for up to 90% of the balance. You still need to pay the cost of protection, an administrative fee, and interest on the loan. However, the remaining balance will earn interest and may cover the interest on your loan, making it effectively tax-free and potentially even fee-free. 

Universal life insurance loans are tax-free to the extent the policy is not considered a "Modified Endowment Contract" (MEC). A MEC occurs when cumulative payments exceed federal tax law limits in order to maintain the tax advantages. Withdrawals from a MEC over and above your contributions are taxable, and if you’re younger than 59 ½ you may incur additional tax. Otherwise, the amount you borrow will not be taxable as income. 

In making these withdrawals, it’s best to consult with a tax professional to make sure that this kind of transaction makes sense for your particular circumstances and needs, and to ensure you’re taking into account the specific rules and regulations for the state in which you live.

Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help. 



This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

A life insurance policy may provide tax advantages that are very attractive.

Simply put, life insurance riders are supplements to life insurance policies. These riders are amendments or additions to policies, offering new features or protection.  

Depending on the policy form, there may be a number of riders available, covering everything from accidental death to terminal illness scenarios. These riders are intended to tailor your coverage to meet your specific needs, which may shift unexpectedly over time. 

Since riders allow you to customize your life insurance and often come at a cost, be sure to look at your needs closely and determine which riders you actually want and need. (In some cases, a rider may even duplicate existing coverage in your policy – so you actually get what you need without paying even more.)   For example, someone who knows their family history is filled with health issues that occur later in life may want to purchase a guaranteed ability to add life insurance coverage down the road when a life insurance company potentially might not choose to cover them due to their health issues. 

Here are just a few of the many insurance riders available: 

For traditional insurance policies, you can sometimes add a guaranteed purchase rider to be able to add more coverage later on. When the underwriting process might be more expensive based on age or health status, this can be a good option for many people. 

This optional feature can add an extra payout to your beneficiaries in the event of your death from a covered accident. Sometimes this payout can even double the amount of money your loved ones receive. There is an extra charge for this type of rider, and it may increase your premiums. Also, policies generally have accidental death conditions, so make sure you read the exclusions before planning your next wingsuit flying adventure. 

This is an accelerated death benefit rider for traditional policies, allowing you to use your death benefit while alive with certain illnesses. So, if you’re diagnosed with a terminal illness, you can take a percentage of your death benefit early and use it as you wish. For instance, these funds could give you the freedom to pay for end-of-life care, travel, or get your affairs in order.  Usually the terminal illness needs to be diagnosed after the policy is issued for this benefit to become available.

A Cost of Living rider increases the amount of your coverage to keep up with the cost of living over time. This helps you hedge your bets against inflation, and can be a good option for some people. (Anyone is eligible to select this rider.) Instead of your family receiving only the original death benefit cited in your policy, a cost of living rider allows your beneficiaries to receive more, with the inflation rate taken into account.  

Typically, riders come at an extra cost. Although they can increase your premiums in some cases, riders can provide expanded coverage or additional benefits. This is why they may be a very helpful option for some people. 


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

Simply put, life insurance riders are supplements to life insurance policies. These riders are amendments or additions to policies, offering new features or protection.

One thing about DIY financial types: we’re goal-oriented. Patience helps, too, because solid financial planning is all about the long game. That’s why adding universal life insurance to part of a financial plan could make so much sense.

Universal life insurance combines sound insurance protection with policy values that provide a potential for savings. The key to that potential is compounding interest. As savvy investors know, time drives compounding, so it’s good to leave interest-bearing funds untouched for as long as possible.

When the time is right, though, you can decide to unlock the financial power in a universal life policy to live better during your life. You have the ability to use the money from your policy value, when and how you choose. Additionally, depending on the policy, the money you access from your policy value may be free from withdrawal penalties and taxes.  However, it is important to understand that taking money from your policy value will reduce your policy value, may reduce your death benefit, and may cause the policy to lapse if additional payments are not made.  Additionally, withdrawals may have certain tax consequences.

Curious about how you can use money saved in a universal life policy? Here are a few ideas:

Life is full of surprises–the good and the not-so-much. Unexpected job loss can happen to nearly anyone, even the self-employed. Unemployment benefits, which vary widely from state to state, can help, but they’re no substitute for full-time work and a full-size paycheck. While you work to get back on your feet, your policy value can supplement any income shortfall. 

As you gain a little more freedom in life, maybe there’s a major purchase on your mind: Pay off your mortgage. Celebrate a special anniversary with a luxury cruise. Buy an RV or splurge on a classic car. You can do it! Simply use the money from your policy value to transform any dream into reality.

How much money do you need to retire? That’s a complex question with no single answer. Many experts recommend that you plan for at least 80% of your pre-retirement income just to maintain your current lifestyle. Of course, from groceries and utilities to transportation and recreation, the costs of living will continue to rise. If you own a home, you should expect an increase in property taxes, too, as well as maintenance costs.

Retirement may also bring new expenses. For example, if you are in good physical health, the minimum age for Medicare is 65. If you retire early, you’ll need to cover health and medical expenses through private insurance or entirely on your own.

Once you leave the workforce, you can replace or supplement your income with funds from your universal life policy. Opt for a lump sum or a steady stream of cash, generally free from taxes and penalties.1 By using your policy value, you can leave your taxable retirement plans until you really need them. The same applies to federal programs. The older you are when you start collecting Social Security, the greater your monthly payments. Rely on your universal life policy for cash while you wait and Uncle Sam will reward your patience.

Remember, taking money from your universal life policy will affect your coverage amount and how long your policy remains active. In some cases, though, using a policy this way may be intentional. Flexibility and control are part of the appeal of universal life insurance.

Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

1See Am I taxed if I want to use my Account Value to get cash? within our Help Library for more information.

Curious about how you can use money saved in a universal life policy? Here are a few ideas.

Universal Life Insurance is a Tool for Living

If your loved ones rely on you for financial support, life insurance should be on your short list of things to start investigating. When you pass, life insurance pays money to those you leave behind, helping provide them with financial protection. Additionally, they can use these funds for anything: credit card debt, mortgage payments, funeral costs, medical bills, tuition, and even daily living expenses. This can help provide some small sense of relief in a time when it’s difficult to think about life admin.

Historically, there have been two main types of life insurance: term and permanent. Term life insurance protects you for a set amount of time or term. Commonly, 1 or 10 to 30 years.

Permanent life insurance generally protects through age 121 as long as you pay the premiums. Universal life insurance is a type of permanent life insurance with a tax-deferred accumulation feature designed for long-term financial savings. In general, universal life has more features and greater flexibility than term.

How much does universal life insurance cost?

Cost can vary from person to person because it’s calculated just for them and includes:

Cost of insurance: What you pay for the coverage you want. This depends on factors like your age, health, lifestyle, and the amount of coverage you want.

Policy fees: Administrative fees and other charges. These are set by each insurance company and can vary widely, so it’s good to look closely before you buy.

What are the benefits of universal life insurance?

1.Life-long protection. You’re protected as long as you keep having birthdays! Many universal life insurance policies can keep you covered through your 121st birthday as long as you pay the required premiums.

2. Tax-deferred savings potential. Your payments cover fees and charges. Anything extra adds up and, over time, earns tax-deferred interest. This is your Account Value.

You can take money from your Account Value anytime, as a withdrawal that you don’t have to pay back—or as a loan that you can. (You don’t have to pay back the loan either, but if you don’t it does reduce your death benefit.) Receive the funds as a lump sum or as a steady stream of smaller payments. The funds you take from your universal life insurance policies may be free of any income tax or early withdrawal penalties.

3. Major flexibility. You are at the controls of your life insurance policy. You choose your coverage, then adjust anytime life changes, for instance, if you get hitched or have a baby. Payments are flexible, too. After the initial setup payment, you decide when to pay (monthly or quarterly) and in what amount. During the life of your policy, you also have the power to increase your payment amount or to add an occasional one-time lump sum, like a surprise work bonus or inheritance.

(Any change to your payments could change your coverage, your Account Value and its credited interest, and how long your policy remains active.)

When you apply for life insurance, your request goes through a process of evaluation and approval. Traditionally, this often means having an in-person medical exam and filling out a lengthy application. Then, waiting several weeks for a decision from the insurance company.

Everly is changing up the old way. To learn more about how Everly is introducing a new approach to buying universal life insurance, click here.  By answering health and lifestyle questions from the comfort and privacy of your own device and at any time you choose, you can get started on the path towards protecting your loved ones with flexible financial opportunities that can help you save in tax-deferred ways for your future.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

If your loved ones rely on you for financial support, life insurance should be on your short list of things to start investigating.

A Quick Intro to Universal Life Insurance

You can enjoy tax-deferred growth and tax-free withdrawals from a universal life insurance plan. This can be a great way to supplement other retirement savings accounts, such as a Roth IRA. Life insurance has no income limits, and it allows you to contribute to the cash value of your policy, which can grow tax-deferred and in many cases, can provide tax-free distributions. 

By overpaying your premiums, any extra money will go toward the account’s cash value. However, you’ll need to be cautious about not exceeding the annual premium limit, which is determined by the Internal Revenue Service. (Check with your tax advisor about this.)

Because a Roth IRA is limited to $6,000 in contributions per year for someone under 50 years of age, if you’re making more than the above Roth income limits, $6,000 may not be enough to save anyway. 

Unlike a Roth, the maximum amount you can pay into a universal life insurance plan is determined by factors such as your coverage amount, age, gender, and health status. Remember, if you exceed the maximum allowed by the tax code, your policy will turn into a Modified Endowment Contract (MEC), which may impact your ability to take tax-free withdrawals from the policy.

Another benefit of universal life insurance is being able to access the cash value of your policy. You can even access money before retirement. (You’ll need to inquire about any fees or policy surrender charges that might accompany a withdrawal and find out how the death benefit will be affected.)

Either a Roth IRA or universal life insurance can be used to grow your money tax-deferred, and most cases, provide a worry-free, tax-free way to access your money in retirement.  A huge benefit of life insurance cash value is that you can access it before age 59 ½. If you should ever need nursing home care, or need to cover some other long-term care or medical costs when you’re older, you can tap into the cash value of your life insurance tax free.

Using universal life insurance as another tool for retirement savings can be a good idea, especially if you’ve maxed out contribution limits to other retirement accounts, such as a Roth IRA or a 401k.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly. 

Universal life can be a great way to supplement other retirement accounts you may have, such as a Roth IRA.  Learn more here.

What’s a death benefit, and how does it work?
You’ve probably heard the term “death benefit” in relation to life insurance. What does it mean, exactly?

It might sound a bit odd — how could dying possibly be a benefit? But simply put, a life insurance death benefit is the money paid to a primary beneficiary (or beneficiaries) after your death.


So, what’s a primary beneficiary?
A primary beneficiary can be one person, or multiple people. It can be a spouse, partner, child, or other family member. It can also be a close friend. Depending on the life insurance provider, it can even be a business or nonprofit organization, such as a charity or trust. The decision is yours to make. 

Whomever you designate, you’re naming a primary beneficiary in your life insurance policy to receive funds in the event of your death. 

Note that if you live in a state with common property laws, you’re obliged to name your spouse as the only beneficiary. (Unless you have their consent to name someone else.) You might want to look into this before selecting your beneficiary to make sure you’re complying with your state’s laws.


Is the money paid tax-free?
Good news: yes, in most cases the beneficiary receives these funds income tax-free, and in one lump sum payment.


Can the death benefit be allocated differently to each beneficiary?
Yes. As the policy holder, you can choose how much of the death benefit to allocate to each beneficiary, and it doesn’t have to be an even split.

Further, your primary beneficiary doesn’t necessarily have to be your spouse or children, even though this is the most common choice. For instance, you can leave a death benefit to care for other family members, such as parents or siblings. You might want to leave money for your grandchildren instead of your children, to make sure they are taken care of. Or you could leave funds for a family-run business to protect it and make sure that it keeps going in your absence.

Alternatively, you could provide for any or all of the above, and choose the allocations as you see fit.


Can the death benefit be used before death?
If the life insurance company provides the option, you might be able to enjoy accelerated benefits, in states where available.  An accelerated benefits provision essentially allows you to access your death benefit early in the event that you have a chronic condition or terminal illness, which can drain your finances quickly.  If you haven’t already done so, check with your life insurance provider to see if this valuable benefit is included in your current policy or in a policy you’re considering for purchase.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help. 



This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

It may sound strange, but there''s a death benefit associated with life insurance.

Life Insurance Death Benefit: What You Should Know

Liquidity in your life insurance policy is the amount of cash available to you while you’re alive, and it’s a feature of universal life insurance.  

A universal life insurance policy offers death benefit protection, as well as tax-deferred savings of contributions that you make. You can accelerate part of your Death Benefit as liquid cash if you have a qualifying critical, chronic, or terminal illness health event in states where available.1 

Being able to access your cash without withdrawal penalties, and in a tax-deferred way2, makes it easier to handle the kinds of expenses that might come up if you have a qualifying condition. For some people, the ability to turn an asset into cash can be very helpful. 

Which types of life insurance offer liquidity and cash value? 

Universal life and whole life insurance offer liquidity because of their cash value components. Term life policies do not provide the benefit of liquidity, so unfortunately there’s no accessing your death benefit while you are alive. 


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

1For more information on using a universal life policy death benefit for serious illness, click here. 

2For more information on accessing your Account Value, click here. 

Liquidity in your life insurance policy is the amount of cash available to you while you’re alive, and it’s a feature of universal life insurance.

What Does Liquidity Refer To in a Life Insurance Policy?

How a life insurance premium is determined can be confusing, so here’s some info that can help as you’re shopping around.

First, what exactly is a life insurance premium? 

Simply put, it’s the amount of money you pay a life insurance company periodically in exchange for life insurance coverage.  That’s easy to calculate for term life insurance.  Your premium equals the amount it costs the insurance company to insure you, plus any additional fees they build into the price to cover their business expenses.

For cash value life insurance, such as universal life insurance, you can also choose to contribute additional money into the policy to build up a cash value amount.  You may wish to contribute an extra amount periodically that can grow tax deferred, helping you consistently save for future expenses while allowing the cash you save to grow in tax-advantaged ways.  (For more information on term life vs. permanent life insurance, check out this blog that outlines the differences between the two.)  In the case of universal life insurance, your premium equals the amount it costs the insurance company to insure you, plus any amount you choose to save, plus any additional fees the company charges to cover their business expenses.

Generally speaking, the cost to insure you should be lower when you’re young and increase with age, when there may be a greater risk of health issues that can come with getting older. Many life insurers assume you won’t keep your life insurance until you die or until the term of your policy runs out. Even so, they charge you an average monthly premium that averages the fees over the entire term of your policy. This means that you might actually pay pay more in the beginning when you’re younger and presumably healthier.  And if you don’t keep your policy for the entire term, you’ve likely overpaid for the coverage you had, unfortunately.

Here are a few helpful terms to know about life insurance:

Front loading: this is when the fees for your policy are charged at the beginning, in each premium payment, rather than when you get your funds at the end.

Back loading: in this kind of policy, the fees are taken out when cash is withdrawn from the policy, or when the policy is surrendered.

Account Value: this is the amount of money you contribute, in addition to your protection premium. The money grows with a small amount of variable interest over time, and it is available to borrow tax-free in certain situations.

Finally, there may be add-ons to a life insurance policy that might increase the premium you pay.  These are called life insurance riders, and they can offer additional features to your coverage that help financially protect you in a scenario such as terminal illness – where your health care costs may greatly increase before you die.

While life insurance premiums can seem complex, they don’t need to be.  When shopping for life insurance, make sure you’re looking at companies who are transparent about their premiums – including the fees they charge – before making your final decision.  This extra measure of research on your part can help you feel certain that you’re getting the best value for your life insurance purchase.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help. 



This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

Life insurance premiums don't need to be confusing.  Learn more about them here.

What is Accidental Death and Dismemberment Insurance? 

Accidental death and dismemberment (AD&D) insurance is insurance that only pays out in the event of certain accidents, such as a plane crash or car accident. It does not pay out for natural causes of death, such as a heart attack, old age, or illness. That means it isn’t a good replacement for life insurance. Instead, think of it as a supplement. (For instance, you might use it as an add-on, on top of life insurance and disability insurance.) Because of its limitations, AD&D is commonly used as a rider, not a standalone policy, and fits in nicely as part of a broader financial protection plan. 

With AD&D, if you’re killed in an accident, the full death benefit will be paid out to beneficiaries. If you are in an accident that is not fatal but results in extreme injury, such as losing a leg or an arm, AD&D may pay out a portion of the benefit, depending on the circumstances. 

Universal life vs. accidental death and dismemberment 

Universal life insurance can provide financial protection for your beneficiaries in the case of accidental death or illness and a natural cause of death. It also provides tax-deferred cash growth. 

Life insurance provides financial protection for your loved ones after you’re gone, paying out in most instances of death. Your loved ones are free to use the payout as they wish, whether it’s covering funeral expenses, college tuition, child care, mortgage payments, or anything else. 

Although accidental death and dismemberment (AD&D) insurance does cover certain injuries, such as losing a limb—and loss of sight, hearing, or speech—its coverage is extremely limited and may not protect you in most cases.  

That’s why AD&D should never be a substitute for life insurance, especially universal life insurance, which provides coverage plus a whole lot more. 

Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.



This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

Universal life insurance can help protect your loved ones while you're still alive.

Accidental Death and Dismemberment Insurance

While cash value life insurance (like universal life insurance) can provide liquidity in the event of death, it can also be used as a financial buffer against volatility during bear markets—and a source of tax-free retirement funds. 

Many people plan their roadmap to retirement by keeping their assets in qualified funds such as a 401k. Universal life insurance can be an add-on to your retirement portfolio because the dollars in your account value may be pulled out dollar for dollar without having to pay taxes – which could help you maintain a lower tax bracket. In addition, if you retire before your full social security payout age, your universal life insurance policy can allow you to fund your retirement so you can live without using social security funds until you qualify for your full social security benefits.   

Think of life insurance as a means of giving your loved ones security and protection, and also consider it a valuable retirement resource. 

As you take steps to think about managing your retirement, there are several ways to plan for it including: 

Determine how much money you’ll need in retirement 

Plan beyond social security benefits, as they may change over time 

Get enough life insurance with living benefits to cover your finances and offer tax-deferred savings for your contributions that you can borrow against 

Contribute to company-provided 401k and other retirement plans 

Access your living benefits and borrow cash from your universal life policy 

To reduce the anxiety of saving for retirement, you can rely on the flexibility of your universal life insurance policy and borrow against it—or, in certain circumstances, you can even accelerate your death benefit while still alive. These living benefits provide additional security for your retirement years. 

No one can predict the future, of course, so it matters how your savings are invested. The stock market brings greater financial rewards—and greater risk. You’ll want to pay attention to how much the cash value of your policy can potentially safely grow, while also considering how much risk you’re comfortable with (as well as your investment horizon).  

If you’re younger, you’ll be less affected by the fluctuations of the stock market over time. If you’re older, you might wish to save more conservatively, with a focus on protecting your cash value rather than aiming for aggressive growth. (Stock market volatility may be too high if you’re at a later stage of life.) 

Regardless, your universal life insurance policy can be a useful part of your retirement roadmap. How you balance risk and reward is entirely up to you, but doing some homework is important. You’ll need to think through your goals, and learn about what’s out there. (Some policies offer a minimum guaranteed rate of return, for instance, which is worth looking into.)  

Life insurance premiums change with age 

Generally, buying a life insurance policy earlier in life will keep your overall costs down. Since you’re typically healthier in your 30s and 40s, policy rates will be cheaper—and the additional compound interest you can earn on your contributions make a universal life policy a smart and safe decision.  

Regardless, when you’re a retiree, there’s nothing more valuable than good health and peace of mind. 


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

While cash value life insurance (like universal life insurance) can provide liquidity in the event of death, it can also be used as a financial buffer against volatility during bear markets—and a source of tax-free retirement funds.

Life Insurance As Part of Your Retirement Roadmap

Accelerated Benefits: Chronic or Terminal Illness

Most people think of life insurance as money for your loved ones after you die. But what if you need the money while you’re still alive? Being diagnosed with a serious chronic condition or terminal illness can drain your finances quickly. Chronic and Terminal benefit riders allow you to access your death benefit for qualified illnesses without paying taxes.  Why are they tax-free? Because it is a prepayment of your death benefit.

You decide what you want to spend your accelerated benefit dollars for: for instance, you could apply the cash toward big medical expenses or paying off other kinds of debts. Some people have even used the money for a dream vacation, allowing them to treasure the time they have left with family and friends and create memorable experiences.

After your death, depending on the portion of the policy you used, your beneficiaries will receive a tax free payout. 

To qualify for life insurance with living benefits, you’ll just need to check that your condition is considered eligible. 

Some universal life insurance plans let you accelerate part of your death benefit if you have a qualifying chronic, or terminal illness health event in states where available. This benefit could allow you to access up to 50% of your death benefit while you are alive.

Electing to receive accelerated benefits will impact your death benefit. The net amount paid to heirs depends upon any amounts you may have previously received through accelerated benefits, withdrawals, and/or loans.

Insurance should be made for living – first for you, then your heirs. 


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

What happens if you life insurance money while you're still alive?  Learn more about options you may have here.

Life Insurance with Living Benefits: What You Should Know

Simply put, the cash surrender value is the amount of money you will receive if you cancel your life insurance policy.  The cash surrender value is equal to the policy’s cash value, minus any outstanding loans, fees, and charges, including any surrender charges or withdrawal fees.

Does term life insurance have a cash value?

No. Term life insurance doesn’t include a cash value. Instead, it pays out a death benefit if you die in the set period of the policy (such as between 10 and 30 years).

What about whole life insurance or universal life insurance—do they have a cash value?

Yes. A whole life policy does have a cash value.  The cash value may increase over time, and you can decide whether you’d like to borrow against the cash value of the policy.  With a whole life policy you are required to pay periodic premiums or the policy will enter the grace period and could lapse if the required payments are not made.   

Universal life insurance also has a cash value.  The cash value earns interest and decreases due to policy charges and fees.

Unlike whole life, premium payments are not required.  Your policy lasts as long as your policy value is sufficient to pay your monthly deductions up to a maturity age.

What’s the difference between “cash value” and “cash surrender value”?

Cash value is the amount of money you have in your insurance policy. Cash surrender value is the amount of money you will receive if you cancel your life insurance policy.  The cash surrender value is equal to the policy’s cash value, minus any outstanding loans, fees, and charges, including any surrender charges or withdrawal fees.

Are there any penalties for using the cash?

If you decide to surrender (or cancel) a cash value life insurance policy, surrender charges or a withdrawal fee may be deducted before the money is sent to you. (Note: There are no surrender fees at any time if you decide to cancel your Everly Life policy.)  However, you should also remember there could be tax consequences for money taken from a cash value life insurance policy. 

How can I use the Account Value of my Everly Life policy?

The amount in your Everly Life policy is your Account Value, which you can use anyway you want. 

To access your money, you can request a loan or make a withdrawal from your Everly Life policy that is generally free of income tax or penalties, under certain conditions. You can take a loan after you’ve held the policy for at least 31 days.1 You can also request a withdrawal from your Account Value after you’ve had the policy for 1 year.2 If your policy is not a Modified Endowment Contract (MEC), withdrawals up to the amount you put into your Everly Life policy and loans are tax-free.3  It is important to remember that taking cash from your Everly Life policy will affect your coverage amount and how long your policy remains active.

What is a MEC? A MEC is when your cumulative payments exceed federal tax law limits. If your policy is treated as a MEC:

First, partial withdrawals are subject to ordinary income tax up to the amount of all the payments you made.

Second, policy loans are treated as partial withdrawals and taxed accordingly.

Third, with certain exceptions, a 10 percent additional penalty tax is imposed on the amount subject to ordinary income tax.

Also, if you ever decide to surrender your Everly Life policy there are no surrender charges. Leaving you with more of your own hard earned – and saved – dollars.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

1To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash from My Account Value through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What do I need to consider when taking a withdrawal.

2To learn more about the rules for taking loans from Everly Life, see How can I Access Cash From My Account Value through Loans. To learn more about the consequences for taking loans from Everly Life, see What do I need to consider when taking a loan.

3If your policy becomes a MEC, it will impact whether you can take cash from your Everly Life policy tax-free. For more information see, Is there a limit on how much money (payments) I can put into the policy.

Simply put, the cash surrender value is the net amount of money you will receive if you cancel your life insurance policy.

As a small business owner, you have special financial needs both for your loved ones and your business. A life insurance policy is an important financial tool to cover a number of unique financial obligations that business owners have. While Everly only offers personal coverage at this time, we believe that in addition to protecting your family and loved ones, you should also consider protecting the future of your company as well. You may also have business partners and employees who count on you for their livelihood. Life insurance can take care of the people who depend on you, whether at work or at home, and avoid their potential financial risk.

As a small business owner, you might not have the typical retirement financial tools of a large corporation, such as a 401k, group life insurance, or disability insurance. Yet business owners have the same financial obligations to their loved ones such as mortgage payments, children’s tuition, and other household expenses that need to be provided for in the event of death. 

Additionally, many small business owners may have corporate debt tied to their personal liability, such as a home loan. Be sure to include all of these costs when calculating the amount of life insurance coverage you might need. Think about income replacement as well as debt protection when you’re trying to determine coverage. The right policy can provide peace of mind for your family after you’re gone. Your loved ones can use the death benefit payout to cover your salary, outstanding credit card debt, student loans, retirement savings for your spouse, and other expenses.

As for the work side of things, the death benefit can cover worst-case scenarios – such as severance pay if the business shuts down, income lost as a result of your death, hiring costs, and any unexpected expenses that might come up. The payout can also just ensure that the business keeps running smoothly, with no disruption to operations.

If you share business ownership, buy-sell agreements are critical. Life insurance, combined with a buy-sell agreement for your business partners, make succession planning simpler and stress-free. By determining in advance (and in clear and specific terms) what happens to each owner’s share of the company if one person leaves (or dies), the remaining partner(s) can choose to buy out that person’s shares for a set price. There is no confusion about what happens next, or how. 

The death benefit payout from your life insurance plan can fund the buyout, ensuring a seamless ownership transfer. And that’s exactly what you want. 

Universal life insurance can provide a tax-advantaged way to borrow money from the cash value of your policy. When you pay your premium, part of the money goes toward your death benefit, and the remainder is applied toward the cash value of your policy. The great thing is that the money you contribute over your monthly premiums will earn tax-advantaged interest. 

You can use this loan to finance your business during lean times or other extraordinary circumstances. Think of the cash value as a safety net you can tap into when you need it most.


Got questions? Reach out and chat with us! Or give us a call a 855.290.0529. 
At Everly, we’re here to help.




This information is intended for educational purposes only.  It does not reflect an availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Everly.

A life insurance policy is an important financial tool to cover a number of unique financial obligations that business owners have.  Learn more about how you can keep your business running smoothly, even when life hits the fan.

Life insurance is an important component in your long-term financial planning, and it can be used in more ways than you might think.

Your universal life insurance premium is made up of 3 components: cost of protection; contributions you make to your account value; and admin fees. Your account value grows with your contributions and the interest you earn on that account value. In a level death benefit plan, as you contribute more to your account over time, the cost of your protection decreases as you pay only for the difference between protection and account value.

Once upon a lifetime...