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. 



The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

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.

We’ve waited, we’ve endured, we’ve anticipated – and now it’s here. Football season is upon us once again. For the 115 million of us who watched the Big Game last February, and the millions more who tune in to college games on those fabled fall Saturdays, it’s an exhilarating feeling! 

So that got us thinking at Everly – you know what else makes us feel exhilarated? Giving our customers the confidence to help them make solid financial decisions. 

You may not have considered it, but coming up with a secure financial plan that includes life insurance is much like football. You need stable investments (defense), effective growth vehicles (offense), diversification (special teams), a leader to oversee everything that happens on the field (a quarterback – that’s you!), and a trusted source to help you tie it all together (a coach – that’s us!)

Allow us to lay out a potential game plan. And feel free to channel your inner John Madden or Paul 'Bear' Bryant while you’re reading this. Or, if soccer is more your thing, imagine us as a slightly less folksy Ted Lasso.

Time to suit up:

First, let’s talk about protection. After all, defense wins championships, right? Well, it can help – but you need a complete team. Yet it’s fair to say defense is an excellent building block.

The first consideration for a life insurance purchase should be protection. If you’re reading this, you’ve likely identified a need for life insurance. Maybe you just got married or had a kid. Or, you’ve bought a new house – which is no easy feat with interest rates on the rise – and you want to make sure your family could afford to stay there if something happened to you. Take a look at Lifehappens.org to help you figure out what you need to protect. September is not only the start of football season, it’s also Life Insurance Awareness Month. Coincidence? We think not! 

You may have thought about purchasing a Term life insurance product. In general, Term products are more affordable than permanent life insurance products, but they have a catch – they end. That’s why they’re called ‘term,’ because they’re only for a certain period, usually 10, 20, or 30 years. If you don’t pass away during your term period – that’s great! But it’s 20 years down the road, and you still have a family and maybe still have a house payment. Yet unfortunately, the cost of insurance goes up as you get older. So you’re back at your own goal line, still needing protection but in the unfortunate position of having to pay a lot more for it. 

That’s why an excellent defensive lineman will read the field and look for the best play – allowing his offense to get back on the field to score points and ultimately win the game. A permanent policy, like a Universal Life Insurance policy, can protect you when life goes according to plan – and when it doesn’t. Just like a good defense.

Now let’s spend a few minutes talking about the fun stuff – growth! After all, fielding a good offensive team is how you score points, right? (At least most of the time.)

The quarterback is the literal driver of the team’s offense. Along with the offensive coordinator, he helps decide which plays to run to give the team the best chance to get a first down. He might choose plays relying heavily on his running backs, to advance the team down the field little by little until they eventually score. Running backs are typically seen as reliable and steady. They chip away at yardage bit by bit and are known as the team's workhorses. In our analogy, you might choose a fixed Universal Life policy to help you achieve steady, stable growth. 

Or, a QB might throw a long pass to an explosive wide receiver. These guys are fun to watch, aren’t they? The QB needs to have a little faith to call a wide receiver play. The ball is going to leave his hands, fly through the air, and hopefully hit the WR right in the numbers. There is that breathless moment where the ball hangs suspended and the QB, the team, the fans in the stadium, and those of us watching at home hold our breath. When it hits – it’s exciting! When it doesn’t – it’s a letdown. 

Either way, the QB’s goal is to score. And after you have built a good solid defense and made sure your family is protected, you’ll likely want to ‘score’ too with various financial and insurance vehicles that can help you save money. 

Protection is just the beginning. You can get a safe and tax-favored way to grow wealth and enjoy easy access to money for whatever you want. Think of all the major events you may experience in your life that might require a little extra money – college funding, retirement, adoptions, weddings, bucket list vacations. How are you saving for all of that? Do YOU have a game plan that effectively combines protection (defense) and growth (offense)? Or are you just focusing on one or the other? Or maybe you’re just starting to think about financial security, and you’re not sure where to start? We get it. We know it can be overwhelming, which is why we want to be a valued, trusted ‘coach’ for you as you do your research. We want to give you the tools you need to help you succeed, but we also want to inspire you to dream big and realize that your financial goals are attainable. 

Now, what about special teams? 
They too are a vital part of your financial plan – but not technically part of the offense or defense. Special teams are the kicker, punter, the punt returner, the long snapper, and more. We know that the offense and defense wouldn’t be as effective or efficient without these guys. There are other financial vehicles you should be aware of to help round out your complete team – savings vehicles like 529 plans if you have children you expect to go to college, or FSAs and HSAs you can use for health care expenses. Like the special teams players, these vehicles have a specific job and can be vital for a comprehensive plan. For our purposes, we aren’t going to talk about them too much – but we want you to be aware that just like with football – diversity and expertise at every position are super important.

OK, now we’ve created the outline of a playbook. We’ve talked about the importance of protection(defense), growth (offense), and specific financial vehicles (special teams). 

So what does all this mean? 
In the next post, we’ll explore how you tie all of these together for a comprehensive, tax-advantaged plan that will have your friends and family referring to you as a financial mastermind. (Except maybe in a sweatshirt with sleeves.)

Life happens, and the best way to prepare for it is to have a game plan. At Everly, we truly want to give you the knowledge and confidence you need to live your best life. That’s what we like to call Made for Living.™

Author Bio:
Meredith joined Everly in 2022 and has 20+ years of experience in the life insurance industry. She has held various roles in advertising, marketing, communications, sales and distribution support, and product development.

Outside of the office, Meredith lives with her daughter Kennedy and their dog Mavis. Meredith enjoys cooking, camping, gardening, hiking, and bourbon (though not always at the same time). She is a live music enthusiast and an avid reader. Her favorite quote is by Thomas Jefferson: "I cannot live without books." Meredith agrees, but would add cheese, movies, and dogs to that list.


The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company or Everly Life Insurance Company.


Life Insurance Planning; Permanent Life Insurance; Universal Life Insurance

Think football and life insurance don’t mix? Think again. Read on to learn about how you might plan your finances like a winning quarterback.

It's Football Season...In Life Insurance Planning?

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.



The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

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

Life insurance helps fill the gap between financial obligations—such as a mortgage, college tuition, and childcare—and the assets and money you already have. No matter what, you’ll want to make sure you have enough life insurance to take care of your loved ones and pay for your financial obligations after you’re gone.  

What financial resources do you have? What are your family’s financial needs? What will their needs be, say, 10 or 20 or 30 years from now? Let’s discuss the DIME formula. 

So what’s the DIME formula, and how does it work? 

The DIME formula means taking a close, detailed look at your finances. It outlines four key areas to make sure you’ve provided for your loved ones: 

Debts: Any outstanding debts that you owe, apart from your mortgage, plus an estimate of funeral expenses (yes, we know it’s sad to think about, but planning ahead will lead to peace of mind) 

Income: Determine how much income your family needs, and for how long. Multiply that need by that number of years. Remember that your income will probably rise over the years, so take inflation into account. (If one parent stays at home, don’t forget to include childcare expenses in their absence.) 

Mortgage: The costs to pay your mortgage  

Education: Any tuition for children, whether sending them to an independent (private) school, or for college tuition 

With universal life insurance, you can increase (or decrease) your coverage as your financial situation changes over time.1 Generally speaking, the earlier you get life insurance, the more likely your cost of protection will be less. Consider taking into account your age, your spouse’s income, and the ages of your children when making decisions around how much life insurance you need. 

What if I already have life insurance through my employer? 

Often group policies through your employer don’t offer enough coverage to provide you with the security your loved ones will need. You should still consider you and your family’s needs to make sure you have enough coverage – just in case. 


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


The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

1For more information on how you can adjust your coverage, click here.

You want to make sure you have enough life insurance to take care of your loved ones and pay for your financial obligations after you’re gone. But how much do you need?

The DIME formula means taking a close, detailed look at your finances. It outlines four key areas to make sure you’ve provided for your loved ones.

No matter what, you’ll want to make sure you have enough life insurance to take care of your loved ones and pay for your financial obligations after you’re gone.

The Federal Government really wants taxpayers to ensure their families are provided for after they are gone. One clever financial strategy: tax-deferred interest as part of a life insurance product. Tax-deferred interest is especially beneficial for high-income earners facing higher state and federal tax rates.

Products that are not tax-deferred are taxed on interest in the same year that the interest is earned. Tax-deferred products are not. As a result, tax-deferred products earn interest on the interest they earn. Ben Franklin described it this way: Money makes money. And the money that money makes, makes money. The longer interest-bearing funds remain untouched, the larger they grow. This amazing phenomenon is called compounding. Time is rocket fuel for compound interest!

You’re probably familiar with two common methods to benefit from tax-deferral, the 401(k) and the traditional IRA. There’s another option not as well known, though also financially strategic.

Your universal life insurance policy has a tax-deferred component

In addition to valuable life insurance protection, a universal life insurance policy packs powerful tax advantages and policy value that has a potential for savings. Your universal life insurance policy payments include the cost of protection plus a policy value component. Generally, anything you include in your payment above the cost of protection earns tax-deferred interest, subject to certain limits.  

Unleashing the potential of tax-deferred interest

To maximize savings, take advantage of compounding interest. Normally, the longer your interest-bearing funds remain untouched with tax-deferral, the more you can save.  Because a universal life insurance policy is a type of permanent life insurance, as long as your policy has enough to pay for the cost of protection and other fees, you can use your policy to save throughout your lifetime–up to age 121!

The tax advantages of a universal life insurance policy may also extend to your loved ones who are named beneficiaries.  Depending on the amount of the death benefit, this could preserve a pile of cash, otherwise destined for the IRS. We encourage you to consult with a tax advisor or financial planning professional about your individual situation.

So – the choice is yours. Earn interest on your interest, or pay taxes on your interest to the government? Thanks to the magic of compounding interest and tax-deferral, your money makes more money.

All it takes is 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 the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company (SBL), Topeka, KS.

A universal life insurance policy packs powerful tax advantages and policy value that has a potential for savings.

The Federal Government really wants taxpayers to save for retirement. One clever financial strategy: tax-deferred savings accounts.

The Advantages of Tax-deferred Interest as part of Life Insurance

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.

Depending on the circumstances, you have different options to access the cash value of your universal life insurance plan in a few different ways that may affect taxes and potentially your protection.  

One way to cash out your universal life insurance is to withdraw the money in the account value of your plan. Withdrawing money from your plan also reduces the amount your loved ones receive in case you die.


What is the account value, exactly? 
Simply put, it means the amount of money in your account over and above the cost of protection that earns interest. The cash value is available to tap into when and if you need it.

In many universal life insurance policies, you can withdraw money on a tax-free basis, but you can do so only up to the amount you have already paid in premiums (remember: premiums include everything you paid – not just the savings contributions). Any interest earned beyond that amount is taxable.

Keep in mind that you can withdraw money and keep your protection by continuing to pay your monthly premiums. 

Can I take a loan on my universal life insurance policy?

Yes, you can take a loan against your cash value (not the coverage amount) after you’ve held the policy for at least 31 days. However, it's important to understand that the longer you let your cash value accumulate, the more you'll have. Loans are useful to access the interest portion of your account value without paying taxes on the interest earned. Loans are tax-free, to the extent the policy is not considered a “Modified Endowment Contract” (MEC).  

However, you should know that you’ll owe interest on the loan, and you’ll still be responsible for the cost of protection and admin fees. Technically you continue to earn interest on account value while paying interest on the same loan amount. 

Accelerated death benefit: access your money while you’re still alive

Think of accessing your death benefit as a last resort. Keep in mind that accessing this money will leave less for your loved ones after you’re gone.

Electing to receive accelerated benefits will impact your policy. For example, in some states, insurance providers can allow you to accelerate part of your death benefit if you have a qualifying critical, chronic, or terminal illness health event. If you receive any accelerated benefits, the coverage amount, account value, account surrender value, match value, and loan payoff balances will be reduced.


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




The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.  

The interest rate charged on the loan can be changed annually, and varies based on policy year. 

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

Life insurance can be used in more ways than you might think.

Accessing the Cash Value of Universal Life Insurance

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. 



The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

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

It’s always great to get a break on your taxes, but your life insurance premiums are generally not tax-deductible. Why? They’re considered a personal expense. It’s true that monthly or annual premiums add up over time, but so do car payments, and there’s no tax deduction on those costs, either. 

Unlike health insurance, there’s no federal mandate requiring you to buy life insurance, so taking on that expense is your personal choice rather than something the government is willing to reimburse you for. That’s the bad news.

Well, that’s the good news. It turns out that life insurance provides favorable tax treatment in its own way: death benefits are typically not subject to income tax when your loved ones are the beneficiaries and receive the money. Each situation is different, and we encourage you to speak to your tax professionals.

Not only is that a huge financial relief, but it means that during a time of loss and grief, your family or loved ones won’t have to worry about paying taxes on the money they receive—because the payout is not regarded as income. (In certain circumstances, some states might impose taxes, so it’s worth having a conversation with a tax professional.) Having this financial cushion offers peace of mind, and possibly long-term security, for the people you love.

If you die while the policy is active, your beneficiary will receive a lump sum that they can apply toward retirement, debt, or just saving for the future. It’s up to them—no strings attached. So if your loved ones ever ask, “Do we pay taxes on life insurance?” you can reassure them that the answer is likely no.

When are life insurance premiums tax-deductible?

Although most people can’t get a tax deduction for these payments, there are certain exceptions:

1) You own a small business and offer life insurance as a benefit to your employees.  

Some businesses are able to deduct the premiums they pay for their staff. If your business qualifies, you can only deduct premiums for up to $50,000 of coverage. Note: you can’t deduct these payments if you (or your company) is the beneficiary of a group policy. Similarly, this won’t work if your spouse works for your company, because you’d potentially benefit from the payout.

2) You give the policy as a charitable gift. 

Transferring ownership of a policy can be a savvy tax move. By giving your life insurance policy to, say, a favorite non-profit organization, or naming a charity as your beneficiary, you can give yourself a nice advantage at tax time. Because the life insurance policy is a charitable gift, the premiums you pay—or the cash value of the policy (whichever amount is less)—are indeed considered tax-deductible.

3) You bought a policy for a former spouse. 

Not all divorces count. But if you have an alimony agreement that took effect prior to 2019, you should be able to take the deduction. (Alimony agreements after 2019 don’t count because of some recent tax code changes.)

Is the cash value of universal life taxable? 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, you’ll only owe taxes on the earned interest.

To get more specific: ‘tax-deferred’ means the accumulation of investment earnings (interest, dividends, and so on) that you don’t have to pay taxes on until you withdraw the money.

So in certain cases you can deduct your life insurance payments, but in most cases, you can’t.  

Obviously, life insurance is a major investment, and a deeply personal matter. Regardless of your situation, it’s important to discuss any potential implications with a tax professional to correctly determine your eligibility. Be sure to write down your questions ahead of time, so you’ll be fully prepared and ready for tax-deferred interest! Then give yourself a pat on the back for thinking ahead and taking such good care of the people you love, even after you’re gone.

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 the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company (SBL), Topeka, KS.

Life insurance provides favorable tax treatment in its own way: death benefits are typically not subject to income tax when your loved ones are the beneficiaries and receive the money.

It’s always great to get a break on your taxes, but your life insurance premiums are generally not tax-deductible...

Many people wonder about the difference between whole life and universal life insurance. Are there advantages to one over the other? 

Both permanent life insurance plans can provide protection for your entire lifetime. The difference is in the flexibility of universal life over whole life plans. 

Although whole life insurance protects you for your entire lifetime, just as universal life insurance does1, the death benefit in whole life insurance is selected at the beginning of the plan and is generally not changeable after that.  Additionally, there are limitations to whole life payment flexibility1. 

Universal life, however, allows flexibility in both the protection amount and contributions towards the Account Value component. Universal life insurance comes with a cash value and a flexible payment structure: you can either increase or decrease how much you pay toward your premiums.2(Note that if you choose to decrease, the difference will be withdrawn from the accrued cash value of your policy.)

Universal life insurance is a permanent life insurance option that can be an ideal choice for people who need flexibility, are looking to build a nest egg, and who want to set up a tax-free death benefit for their beneficiaries.

One of the great things about universal life insurance is that part of the premium you pay goes toward the death benefit and administration, while the rest applies toward the cash value of your policy. As it grows, that cash value earns a small amount of  interest over time.3

Advantages of universal life insurance vs whole life

There are a number of advantages to universal life insurance as a permanent life insurance solution: 

Ability to adjust your death benefit amount as your financial needs and circumstances change 

You can adjust your contribution to your Account Value component 

When considering permanent life insurance options, universal life insurance offers some distinct advantages vs. whole life insurance. Want to find out whether it’s right for you? Reach out and chat with us! Or give us a call a 855.290.0529. 

At Everly, we’re here to help.



The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

1For a succinct explanation of whole vs. universal life insurance, click here.

2For more information on changing a payment, click here.

3For more information on withdrawals, click here.

Many people wonder about the difference between permanent life insurance solutions such as whole life and universal life insurance.

Many people wonder about the difference between permanent life insurance solutions such as whole life and universal life insurance. Are there advantages to one over the other?

Universal Life Insurance vs. Whole Life Insurance: What Are the Advantages?

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. 


The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

Death benefit; Primary beneficiary; life insurance; index universal life insurance

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

Life Insurance Death Benefit: What You Should Know

TLDR version: There are lots of unknowns in life, including what might happen to you financially if you get seriously ill. Some universal life insurance policies can help protect your financial health in uncertain times by offering living benefits – which allows part of the life insurance coverage to be used before death. 

Our research shows life insurance that can be used while you are living is something consumers want because it’s another way to protect their families. With modern universal life insurance policies, you may be able to access up to half of the total coverage amount in case of a qualifying critical, chronic, or terminal illness – and there are no restrictions or rules on how the money can be used. Plus, the benefits received are tax-free. (However, using your living benefits may reduce your remaining coverage amount.)

Life insurance may seem scary, but it really isn’t. Of course, one of the reasons life insurance discussions can be so terrifying is because they bring up the possibility of death. We agree that the thought of losing someone you love is scary, but life insurance can help alleviate some of the financial fright that can come with the loss of a family member.

In addition to more traditional uses of life insurance, universal life insurance may be able to offer another kind of protection – a safety net that can help in case of a severe illness. Our research shows that people want to be able to use at least part of their life insurance as another way to protect their families while they are still alive – so that's why suggest looking for life insurance policies that include access to living benefits.

Fear of the Unknown 

H.P. Lovecraft, who wrote some of the scariest stories EVER, said, “The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown.”

Most of us can identify with being afraid of the unknown, and there are lots of life events that may cause trepidation – moving to a new home, beginning or ending a relationship, losing a job, or starting a new one. Those are all great big unknowns that may result in more than a bit of anxiety.

Yet there’s another unknown that people often don’t prepare for. What happens if you get really sick… and don’t die? Will you still be able to work? Will you be able to pay your medical bills? Statistics tell us that many people don’t prepare for this unknown. Just as many of us are afraid to think about death, we’re also afraid to think about the impact of a serious illness.

A 2022 study* by Lending Tree found that nearly 1 in 4 Americans (23%) have some medical-related debt. Millennials (30%), parents with children younger than 18 (30%), and those earning less than $35,000 (28%) are most likely to be burdened by medical debt.

Lending Tree also found that medical debt prevents consumers from achieving financial milestones. Nearly a fifth of those with medical debt (19%) said it’s preventing them from buying a home. In addition, 68% of those in medical debt have lost sleep worrying about it.


Living Benefits Help Alleviate Fear of a Serious Illness
Fortunately, some universal life insurance policies automatically include living benefits that can help in case of a diagnosis of a qualifying illness. Those qualifying illnesses have three main categories – critical illness, chronic illness, or terminal illness – and we’ll go through each of those. 

Critical Illnesses
Critical illnesses include a major heart attack, stroke, coronary artery bypass, invasive cancer, non-invasive cancer, end-stage renal failure, major organ transplant, paralysis, coma, and severe burn. These are covered events, based on a medical diagnosis.


Chronic illnesses 
Chronic illnesses are also covered. There are two instances that may qualify:

1. The insured person is unable to perform at least two Activities of Daily Living (ADLs) without substantial assistance. ADLs are those associated with personal care – bathing or showering, dressing, getting in and out of bed or a chair, walking, using the toilet, and eating. 
2. The insured person needs substantial supervision due to severe cognitive impairment. 


Terminal illnesses 
Terminal illnesses are what you may expect. The insured is eligible once they receive a doctor’s diagnosis that they have 12 months or less to live due to their medical condition.”

How Living Benefits Work
If the person who is covered by the universal life insurance policy is diagnosed with any of the illnesses or conditions outlined above, he or she can request an ‘acceleration’ up to half of the coverage amount. Accelerate means to speed up – so accelerated benefits are just that – sped up, so they are received before death. The benefits received are recalculated based on how old the insured person is when he or she gets sick, and how serious that illness is based on how it may impact life expectancy. 

At Everly, ‘accelerated benefits’ and ‘living benefits’ mean the same thing. We use the term ‘living benefits’ because even though they’re part of life insurance coverage, they can be accessed now – while the insured person is still alive. The amount someone receives is determined on a case-by-case basis, and every accelerated benefit rider claim is handled personally and compassionately. 

So now that you understand what kind of illnesses are covered and how much of the coverage amount is available, let’s see how this would work in case of one of those qualifying illnesses.


Living Benefits in Action
Ari is 55 years old. He has a major heart attack, which is a covered illness. His doctor orders him to take some time off work, and Ari also knows he will have to make significant lifestyle and diet changes. He knows he needs to spend some time relaxing and acclimating to his new lifestyle, so he can continue to be around for his children and grandchildren. 

Ari has a $1,000,000 policy, which means he can request an ‘acceleration’ of up to $500,000. He files a claim under the Critical Illness Accelerated Benefit Rider, and gets an offer from Everly to receive 60% of his eligible coverage amount, which is $300,000. Ari didn’t receive the full $500,000 because he is receiving part of his death benefit coverage before he actually dies, so the amount was re-calculated based on his age and how serious his illness was. This money goes into Ari’s bank account tax-free because it is part of his life insurance proceeds – which are not taxable. 

Ari uses his living benefits to pay off the portion of his medical bills that weren’t covered by his health insurance. He also pays his mortgage for the next six months, then rents a beach house for six weeks for himself and all his family. He doesn’t have the stress of worrying about his finances while recovering. Ari could have used his money in any way he wanted. The choice is 100% up to the customer, and there are absolutely no restrictions on how or when any living benefit money they receive is spent.

If Ari’s heart attack had been more severe, he likely would have received a higher amount because his life expectancy would likely be shorter. Likewise, if his heart attack had been milder, he likely would have received a lower amount. Again, every claim is calculated on an individual basis using medical and actuarial data. 


Trick or Treat: Medical Bankruptcy vs. Living Benefits 
Now let’s think about what Ari’s situation would have been like had he not had a universal life insurance policy that included living benefits. 

Ari had health insurance through his employer, so 80% of his medical bills were covered. Living benefits aren’t designed to take the place of health insurance, nor should they. Additionally, living benefits are not long-term care insurance or a substitute for it. The living benefits offered in universal life insurance policies may be used for anything – to help pay any remaining medical bills, to help supplement an income during time off work, or to spend on a bucket list vacation – as Ari chose. 

Of course, we know that most serious illnesses come with substantial debt – even with health insurance. As many as 62% of bankruptcies include significant medical debt. And the cost of a heart attack can be very high, ranging from $20,000 to as much as $100,000 if surgery is involved.  

Let’s say, hypothetically, that Ari’s health insurance covered 80% of his medical bills after his deductible was met. After his health insurance covers 80% of his costs, he still owes about $18,000. This includes his ER visit, chest x-rays, MRIs, CT scans, heart bypass surgery, IV medication, and room and care charges. Unfortunately, Ari didn’t have a lot in savings because he had paid for his daughter’s wedding and his son’s college tuition. He doesn’t want to take money out of his retirement account, he has a substantial house payment, and he still has two younger children living at home. He has debts he already pays on and can’t afford another sizeable monthly bill. Ari seriously considers filing for bankruptcy, but he is hesitant to do so because of the lasting financial impact it may have. Overall, Ari has difficulty deciding how to deal with his finances.

Universal Life may help protect against more unknowns
At Everly, we believe financial security is part of the foundation of living a better life.  Since serious illness might derail future financial plans, we suggest researching universal life insurance policies that include living benefits as discussed in this article. Protecting the people you love is essential – and so is protecting yourself. 




*https://www.lendingtree.com/personal/medical-debt-survey/#MostAmericanshavebeenindebtduetomedicalexpenses

 
The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.


Important Information Regarding Accelerated Benefit Riders (ABR):
Accelerating life insurance benefits offered under this rider may or may not qualify for favorable tax treatment and you may incur a tax obligation. There is a fee for the rider when activated. Accelerating benefits under the rider will reduce the account balance, cash value, loan value and face amount of the policy. Receipt of an accelerated benefit payment may adversely affect your eligibility for Medicaid or other government benefits or entitlements. Neither SBL nor Everly provides tax advice. Please consult a qualified legal or tax advisor regarding questions concerning the information and concepts contained in this material.  

Key takeaway: A serious illness is hard enough without dealing with added financial stress

Learn more about how living benefits within life insurance can help provide protection during times of serious illness.

Fear of the Unknown? Living Benefits Can Help

Yes, you can have more than one life insurance policy—and you can even have different kinds of policies (from different companies!). Even if you already have term life insurance, which may only have a limited number of years left, you can add universal life insurance and have a policy that may extend beyond the term of your other policy. 

For some people, having more than one life insurance policy is a strategic choice, providing peace of mind and ensuring that your loved ones are taken care of.  

Should I buy more than one life insurance policy? 

Does having more than one life insurance policy make sense for everyone? Maybe not. But depending on your situation, there are some good reasons to buy more life insurance. Let’s take a closer look. 

More coverage. You might need more coverage, or simply have different goals for the coverage, because your family or financial situation has changed—for instance, if a breadwinner dies—or as a supplement to life insurance provided by your employer. 

Small-business needs. Let’s say you own your own business. In certain scenarios, you might want a term policy to cover your family and another to cover business obligations that will eventually have to be repaid.  

Additional savings. If you only have a term policy, you might want to consider adding a universal life policy In addition to providing a death benefit, universal life insurance contributions may provide extra value that grows over time. 

Many people employ a technique known as “laddering life insurance,” which means adding policies as their finances change. You can add another policy to cover additional current expenses, such as a mortgage or college tuition. Typically, insurers will inquire about your current coverage to better determine what a reasonable amount might be. You might get further scrutiny, however, if the total coverage were to exceed, say, 20 to 30 times your income. 

For some people, a laddering strategy can be a wise move and save them money. Rather than purchase a single large policy, such as a $1 million, 30-year policy, buying multiple policies with different amounts and lengths can suit your needs over time. Life can be pretty unpredictable, as we know. 

Can You Have More Than One Life Insurance Policy?

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 the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company (SBL), Topeka, KS.

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

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 the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company (SBL), Topeka, KS.

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

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

Taxes can derail even the best-laid financial plans, and there are ways you can help alleviate your tax burden through tax-deferred options like 401(k)s and IRAs. You can also invest in 529 plans, HSA plans, or FSA plans that are even more tax-favored. Cash value universal life insurance can be an attractive option as well for many people. 

In a previous article, we outlined how a winning football team is very much like a successful financial plan. 

The building block for any good team is defense. As the saying goes, defense wins championships.  And when it comes to life insurance, protection is the name of the game. But you also need a strong offense, so you may want to consider a variety of growth strategies within your financial portfolio, including universal life insurance. We also talked about how important it is to pepper some great special teams players into the mix.

Finally, every team needs a franchise quarterback. At Everly™, we’re giving you the tools you need to be your own financial quarterback. So let’s talk about the next steps – putting it all together. 

The Impact of Taxes
One of the most important considerations to make when building your financial portfolio is how taxes will impact your money. Even the best players can be sidelined by injury, just like any good financial plan can be sidelined by unexpected taxes. We’re going to explore some defensive strategies to help you plan how to deal with taxes.

First, let’s talk about money that’s always taxed – this is your income. You’re taxed on your paycheck, on any interest that grows in a savings account, on money market accounts, CDs, and more. However, this money is easily accessible and highly liquid. 

There’s not much you can do about income tax. Coach Vince Lombardi said “The only place where success comes before work is in the dictionary." We’d like to point out that taxes are wedged right in there between success and work. If you’re employed and earn a paycheck, you’re going to pay taxes, and then comes the work to figure out how to pay less of them!

But, you can postpone your tax burden. And unlike a delay of game, you don’t get penalized for this one. You can grow your money now, and not be taxed until you use it. Most money that sits here is in a retirement account like a traditional IRA or a 401(k). Your money goes into these accounts without being taxed – but it’s taxed when it’s used. So you don’t avoid taxes, but you do manage to delay their impact.  

Special Teams Players
There are a few ‘special teams’ players that deserve a mention when talking about taxes. 529 plans are specifically used for education, and you’re not taxed on any 529 account growth. But – these accounts must be used for education only. Talk about special teams!

Many of us are also familiar with HSA and FSA plans. HSA plans are health savings accounts you own through your employer – or you can purchase one on your own. They can be used to help pay for health care if you have high-deductible health insurance. You can contribute money to your HSA before taxes, and you’re not taxed when you use that money to pay for qualifying medical expenses. Your employer may also contribute to your HSA account, and this money is also tax-free. Like a 529 plan, an HSA plan has a very specific use. HSA accounts can only be used for medical expenses related to a high deductible health plan, and there are some other restrictions around how much you can contribute to these accounts. 

An FSA plan is similar to an HSA plan, but you can use your FSA account for any qualifying health care expenses – they don’t have to be linked to expenses incurred with a high-deductible plan. FSA stands for ‘flexible spending account,’ and these plans do in fact have some additional flexibility. You can also use your FSA plan to pay for childcare or work-related transportation expenses. Any money contributed to an FSA plan is tax-free, and you’re not taxed when you use the money. However, you can’t purchase an FSA on your own, they are only available as part of a benefits package from an employer. And, since the FSA technically belongs to your employer, if you leave that job, you lose that money. An FSA is also ‘use it or lose it’ – any money in your FSA account that is not used by a specific calendar date goes away.

An Unsung Special Teams Player – the Long Snapper
So, where does that leave us? Is there a less famous but equally important special teams player you need to consider adding to your roster? Yes – permanent life insurance that has the potential to grow cash value, playing the role of a long snapper. Allow us to explain. 

All life insurance premiums – whether it’s for universal life insurance, term life insurance, or whole life insurance – are paid with after-tax dollars, and any money your beneficiary receives when you die is tax-free. Likewise, if you purchase a policy that includes living benefits that are payable in the event of a serious illness (like the kind of universal life insurance that is offered by Everly), the money received in the event of a serious illness is also tax-free. 

Also, a universal life insurance policy that builds cash value can be used to help save money for the future, in addition to providing a death benefit to your family. Any money that is put into the account that is over and above the cost of insurance and any administration fees also grows tax-deferred. You only pay taxes on any interest earned that is over and above the amount you paid into the policy. 

That all sounds good – but what in the world does that have to do with a long snapper? There are a few interesting correlations. First, they started being relevant at about the same time. Universal Life was introduced in the early 1980s, about the same time that the first player was selected in the NFL draft for his long-snapping abilities.

Despite their relatively anonymous role, a team lacking a skilled long snapper can be seriously undermined, giving up big plays when they matter most. Much like a financial portfolio without a universal life insurance policy that can function as a growth account can be seriously undermined, leaving clients without protection when they need it most. 

Executing Your Gameplan
So what does all of this have to do with football? It’s all about building a good team, diversifying your assets, and making sure you have the knowledge you need to help you feel confident about the decisions you’ll make as your own financial quarterback. 

Life insurance is designed for protection, and that good defense can be the first building block in a winning strategy. You can also use universal life insurance to help grow wealth and enjoy easy access to that money for whatever you want. Do YOU have a game plan that effectively combines protection (defense) and growth (offense)? 

Life happens, and the best way to prepare for it is to have a strategy. At Everly, we truly want to give you the knowledge and confidence you need to live your best life. That’s why we call Everly Life™, life insurance made for living. 





Author Bio:
Meredith joined Everly in 2022 and has 20+ years of experience in the life insurance industry. She has held various roles in advertising, marketing, communications, sales and distribution support, and product development.

Outside of the office, Meredith lives with her daughter Kennedy and their dog Mavis. Meredith enjoys cooking, camping, gardening, hiking, and bourbon (though not always at the same time). She is a live music enthusiast and an avid reader. Her favorite quote is by Thomas Jefferson: "I cannot live without books." Meredith agrees, but would add cheese, movies, and dogs to that list.


The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company or Everly Life Insurance Company.

Cash value universal life insurance can be an attractive option for protection plus saving in tax-advantaged ways.

Fielding a solid financial team starts with being aware of how various investments and insurance products may impact your tax responsibilities. 

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 the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company (SBL), Topeka, KS.

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.

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

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 the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company (SBL), Topeka, KS. 

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

Of all the things you might want to understand about life insurance, this is among the most important, so let’s dive right in.

Term vs. Permanent Life Insurance: pros and cons

Unfortunately, there’s no ‘one-size-fits all’ response. Who you are, what you need, and the kinds of curveballs life might throw at you vary wildly from one person to the next. “But really, which is better, term or permanent life insurance?” you might ask. The truth is that the option that seems ‘best’ for one person will be wrong for another. Your unique set of preferences, needs, finances, and other circumstances determine which pros outweigh the cons, and vice-versa.

What’s the difference between term and permanent life insurance?

Here’s the broadest definition: Term life insurance is designed for a specified amount of time, usually 10 or 20 years (you choose the terms). Permanent life insurance, as the name implies, allows a death benefit, as well as money that grows tax-deferred and can actually be used. Now we’ll delve a bit deeper into each.

For both types of insurance, your loved ones will be able to use the proceeds to cover funeral costs, mortgage payments, child care, college tuition, and other kinds of expenses.

Traditionally, term life insurance costs much less, but it has an end date as it only covers the death benefit for a fixed term. 

Permanent life insurance includes a cash contribution to your savings that grows over time.



Term vs. Permanent Life Insurance Costs

There’s no question that term life insurance has traditionally cost less than permanent life insurance. However, if you don’t die during the ‘term,’ such as 10, 20, or 30 years, your coverage ends—and no one will receive any payout. That’s because it’s intended to protect your beneficiaries from financial stress if you die earlier in life. Otherwise, the policy has no value – hence the traditionally cheaper cost.

Permanent life insurance can look like a more expensive plan, once you add the amount you save to the protection you purchase. However, you can look at it as a way to save money in a tax-deferred account as well.  The cash value grows over time, and in many cases, you don’t have to worry about taxes on the gains that accumulate. You can even borrow money against the account, or ‘surrender’ the policy for cash. (If you do that, you lose the coverage.) And permanent life premiums (though sometimes higher than term premiums) will remain the same for the rest of your life. Broadly speaking, someone in their 30s, 40s, or 50s can expect to pay annual premiums ranging in hundreds of dollars for, say, a 20-year term life insurance policy. With the amount of savings added to the protection over the course of the year, a permanent life policy could range in thousands of dollars annually.

Term vs. Permanent Life Insurance: which one do I choose?

Again, this is a critical decision that’s entirely up to you, depending on your circumstances. Some people find term life sufficient, and comfortable for their budgets, while others like the lifelong security of permanent life insurance, and want to provide money for their heirs.  The best option just might be one where the protection cost of a permanent life policy is nearly similar to term, but with an opportunity to grow money in tax-deferred savings over time.


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



The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

Low cost protection?  Or the opportunity to grow money in tax-deferred savings over time?  Learn more about both options and which one might be right for you.

Which is Better: Term or Permanent Life Insurance? Everything You Need to Know

It’s always great to get a break on your taxes, but life insurance premiums are generally not tax-deductible. Why? Simply put, they’re considered a personal expense. 

Unlike health insurance, there’s no federal mandate requiring people to buy life insurance, so taking on that expense is a personal choice rather than something the government is willing to reimburse people for. That’s the bad news.

Well, that’s the good news. It turns out that life insurance can provide favorable tax treatment in its own way: death benefits are typically not subject to income tax when a beneficiary receives the money. 

Not only is that a huge financial relief, but it also means that during a time of loss and grief, your family or loved one won’t have to worry about paying taxes on the money they receive from a life insurance payout — because the payout is geeraly not regarded as income. (In certain circumstances, some states might impose taxes, so it’s worth having a conversation with a tax professional.) Having this type of financial cushion offers peace of mind, and possibly long-term security, for the people you love.

If you die while the policy is active, your beneficiary will receive a lump sum that they can apply toward debt, retirement, or simply saving for the future. It’s up to them—no strings attached. So, if your loved ones ever ask, “Do we pay taxes on life insurance?” you can reassure them that the answer is no.

Life insurance premiums are tax-deductible in some cases

Although most people usually can’t get a tax deduction for these payments, there are certain exceptions:

1) You own a small business and offer life insurance as a benefit to your employees. 

2) You give the policy as a charitable gift.

3) You bought a policy for a former spouse.

Not all divorces count. But if you have an alimony agreement that took effect prior to 2019, you should be able to take the deduction. (Alimony agreements after 2019 don’t count because of some recent tax code changes.) 

Is the cash value of universal life taxable? 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 earnings.

To get more specific: ‘tax-deferred’ means the accumulation of investment earnings (interest, dividends, and so on) that you don’t have to pay taxes on until you withdraw the money.

So, in certain cases you can deduct your life insurance payments, but in most cases, you can’t. Obviously, life insurance is a major investment, and it’s a complicated and deeply personal matter. Regardless of your situation, it’s important to discuss any potential implications with a tax professional to correctly determine your eligibility. Be sure to write down your questions ahead of time, so you’ll come prepared. Then give yourself a pat on the back for taking such good care of the people you love, even after you’re gone.



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


The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

Life insurance can provide favorable tax treatment in its own way: death benefits are typically not subject to income tax when a beneficiary receives the money.

Although most people usually can’t get a tax deduction for life insurance premium payments, there are certain exceptions that you may be able to qualify for.

TLDR: When daylight savings time ends, it’s normal to feel a little less energetic. But Everly Life™ offers both life insurance protection AND tax-advantaged growth. Money added to the savings bucket can grow with a competitive 4% current interest rate that compounds year after year. It’s Vitamin D in financial form!


The Whole Story
It’s early November, right after daylight savings time (DST) has ended in the US. Many of us are tired, cranky, and just plain sad – except for those lucky folks in Arizona and Hawaii who don’t have to deal with ‘falling back.’

Let’s explore this somewhat recent phenomenon, and talk about ways to combat the darkness with a financial savings strategy that is truly eye-opening!

History of Daylight Savings Time
Daylight savings time happens when we advance clocks forward in the Spring (spring forward) so that darkness falls at a later time. In the Fall, we set our clocks back by one hour (fall back) to return to standard time. 

Why did this whole clock-switching thing ever seem like a good idea? That’s a long story, but it was first implemented in the US as a wartime measure for conserving energy resources during WWI. Adoption since then has been spotty, and only became widespread in the 1960s and 70s as a way to reduce energy (with the idea being that longer daylight hours would result in the need for less energy usage.)

People generally like DST because of the seemingly ‘extra’ hour of sunlight they get in the Spring, but they don’t much like the feeling of ‘losing’ that hour in the Fall. Daylight savings time is so popular that in March of 2022, the Senate unanimously passed the Sunshine Protection Act, extending DST from the usual Spring to Fall period to the entire year! Yet at Everly, we have an even better savings idea. And we don’t even need an Act of Congress! 

Everly Savings Time 
Everly is a company of innovators and industry experts who believe in helping people protect those they love while also reaching the financial outcomes they have set for themselves. So we offer a solution that serves two needs – protection and growth. Protecting yourself and your family is the purpose of life insurance, but with most universal life insurance policies, you can also save money. Read more about the protection that permanent universal life insurance can provide. 

But today, we’re going to discuss how permanent life insurance can function not only as a protection solution, but also as a growth solution. We want people to understand how money can work for you, instead of just you working for your money! Universal Life policies are typically designed to help build savings over time with a long-term strategy to build upon the account value, year over year. Any money paid into the policy that is over the protection cost can grow with compound interest that is tax-deferred. With our current interest rate of 4%*, savings can build faster than many traditional savings options without worrying about stock market risk. 

Protection AND Growth
The cost for universal life policies is typically made up of two parts – a protection portion and a growth portion. When a policyholder makes premium payments, the monthly payment is applied to both buckets.

The protection bucket covers the death benefit. In the life insurance industry, the amount paid for protection is called the ‘cost of insurance.’ The cost of insurance changes yearly – in general, it’s lower when you are younger, and increases as you age. Why? Because statistically, you are more likely to pass away as you get older (i.e., a 75-year-old woman is more likely to die than a 25-year-old woman, so the cost of insurance would be higher at age 75.)

The growth bucket is the savings component. Any money that is paid over and above the cost of insurance goes into the growth bucket, where it earns a 4% current interest rate. This rate is better than most traditional savings accounts**and is guaranteed to never fall below 1%. 

Let’s look at how a typical universal life insurance policy's account value can walk on sunshine year-round! Think of it as Vitamin D in the form of financial security.

How Tax-Deferred Compound Interest Works
Joan pays $124 a month to Everly. Of that amount, $44 covers her cost of insurance – her protection, and the remaining $80 goes into her policy’s cash value – her growth portion. After one year, Joan has built up $980 in her policy’s cash value, $20 of which is earned interest. We know $20 doesn’t sound like a whole lot, but consider what happens after ten years: Joan will have paid $10,400 into her policy’s cash value, but her account value would be $11,750 – over $1,350 in interest. After twenty years, the outlook is even sunnier. Joan will have paid $19,200 into her policy’s cash value, but her overall cash value would be $29,075! And here’s the big ray of sunshine – all the interest earned in her policy would be tax-deferred. Joan wouldn’t need to pay taxes on her interest at the end of each year because the cash value inside of a life insurance policy grows tax-deferred. She would only pay taxes on the interest when and if she decided to withdraw it. 

Yet there are a few other things to consider when discussing the cash value inside of a permanent life insurance policy. First, it's important to understand that the longer Joan kept contributing money to her account without withdrawing, the more her cash value grew. Had she taken any money out of her cash value, her account value would have been much less. It’s also important to note that if Joan had taken a loan or withdrawal from her policy, she would need to be sure enough money remained in her account to cover her cost of insurance. Our dedicated Customer Experience Team can help answer any general questions you may have on how borrowing against the cash value in a policy might impact that policy. 

Finally, it’s important to point out that the current rate of 4% can always go up or down, and can be changed once a year for the first ten years of the policy. After that, the interest rate can be changed quarterly. The rate is set depending on the interest rate environment, which has steadily been trending up in 2022. The guaranteed interest rate will always be at least 1%, which is still higher than the national deposit rate average of .21%, according to the FDIC as of October 2022.

Daylight Savings Time vs. Everly Savings Time
So, as you’re thinking about the end of daylight savings time this year, consider how a universal life insurance policy can protect your family while also offering tax-advantaged savings that build year-round, year after year. No more falling back – with Everly, you can spring into action and make your money work harder for you! 



*Current interest rate as of 11/7/22 is 4%. Minimum guaranteed interest rate is 1%.
** National Average Savings Account rate 0.21% as of 10/17.22 source 

The example is based on a 35-year-old female in good health, with $750,000 death benefit. This is a hypothetical example and does not represent an actual policy. Client experiences will differ. The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

Author Bio:
Meredith joined Everly in 2022 and has 20+ years of experience in the life insurance industry. She has held various roles in advertising, marketing, communications, sales and distribution support, and product development.

Outside of the office, Meredith lives with her daughter Kennedy and their dog Mavis. Meredith enjoys cooking, camping, gardening, hiking, and bourbon (though not always at the same time). She is a live music enthusiast and an avid reader. Her favorite quote is by Thomas Jefferson: "I cannot live without books." Meredith agrees, but would add cheese, movies, and dogs to that list.

The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company or Everly Life Insurance Company.

Key takeaway: The end of daylight savings time can make people feel down in the dumps. But protecting your family and growing your money with Everly can have you walking on sunshine all year long! 

Permanent life insurance solutions such as universal life insurance can function not only as a protection solution, but also as a growth solution.

The end of daylight savings time can make people feel down in the dumps. Read more about how protecting your family and growing your money at the same time can have you walking on sunshine all year long! 

Down in the Dumps Over the End of Daylight Savings Time? Try a New Savings Strategy

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.


The information provided is general in nature, is not tailored to your needs, and is not intended to be tax or investment advice. For legal, investment, accounting, or tax advice, consult the appropriate professional. This information does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company.

What happens if you need 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, if you have someone you love who depends on you, you need life insurance.

Life insurance helps cover financial obligations that your loved ones may have after you’re gone. Many people need life insurance to provide for family members and other people they care about. 

It’s perfectly understandable that life insurance is something many people avoid thinking about—after all, no one wants to contemplate that they won’t be around someday—but the fact is, if you die unexpectedly, the last thing you’d want is for the people you love to be left with the burden of debt. The payout from life insurance could help them cover their own financial needs, pay off outstanding bills, cover education or retirement, pay off a mortgage, and much more.

Here are some situations where life insurance can be a great asset to have:

Parents: one of the most common reasons for having life insurance is to provide for minor children. From education costs to housing and food, life insurance can give your child a safety net and some security for the future, long after you’re gone.

Couples: life insurance can provide financial help for your spouse or partner. You’ll want to assess all the financial obligations you might have, such as a mortgage or other household expenses. If your significant other relies on your salary, then life insurance can fill in that gap and allow your spouse or partner to live comfortably without the stress of scrambling for extra income.

Aging parents: if your parents rely on your income for support, or if you send them money regularly to supplement their retirement, a life insurance policy that offers the opportunity to grow cash value while providing protection to help cover those costs can be a smart thing to do.

Stay-at-home parents: while many people think of life insurance to replace income from a working parent, the costs saved by a stay-at-home parent are significant. In the event of their passing, life insurance can help cover the costs for daycare, a nanny, or other kinds of caregiver support.

Single parents: If you are a single parent and something unexpected happens to you, such as an accident or a terminal illness, you’d want to provide funds for a family member to take care of your child financially. Life insurance can give your child (or children) financial security for years to come.

Life insurance helps cover financial obligations that your loved ones may have after you’re gone. Many people need life insurance to provide for family members and other people they care about.

Life Insurance Fees