Most consumers looking to maintain life insurance coverage for short period of time typically only consider term life insurance. However, if you would like coverage for even a longer period of time, you must consider hybrid life insurance.

Why Buy Hybrid Life Insurance?

What is hybrid universal life?

Hybrid universal life is also referenced as Term/UL by many insurance companies.

Hybrid insurance is a type of permanent life insurance which is similar in cost to term coverage.

Like term insurance hybrid premiums and death benefits can be locked in for 10, 15, 20, or 30 years.

Like universal life, hybrid premiums and death benefits can be locked in to a specific age (80, 85, 90, and 100).

Do you need coverage which lasts for a long time? But, have been hesitant because you are concerned about the high cost of permanent life insurance.

Then, you really should take a serious gander at the new hybrid life insurance!

Most folks automatically associate all permanent coverage with much higher costing premiums because of the cash value element involved.

These applicants typically jump into term life coverage assuming it is always the best type of life insurance for paying lower premiums.

Keep in mind, we are strong advocates of the long time adage of “buy term, and invest the difference” or “buy term, and invest the rest”.

This philosophy is also embraced by popular radio celebrities such as Dave Ramsey and Suze Orman.

Here is how buy term, and invest the difference philosophy works:

The idea is to buy cheap term insurance for 10, 20,or even 30 years.

Then. invest the premiums that would have been allocated towards permanent coverage.

These long time horizons usually allow mutual funds to out perform the cash values inside of you universal or whole life policy.

However, if you need coverage for a longer period of time, hybrid insurance coverage is now available at a similar price point to term life.

Both term and hybrid life insurance offer guaranteed death benefits and premiums for an initial period such as 10, 15, 20, or even 30 years.

For example, a 20-year term or 30 year term life insurance plans have level premiums for either 20 or 30 years.

So, in order to collect on term life, you would need to die within your term period, unless you policy contains a conversion privilege.

A convertible term life insurance policy gives you a right to convert your term life insurance into a universal life policy without doing a new exam or answering any health questions.

Most whole life and guaranteed universal life are more expensive because of the focus on cash value accumulation and guaranteed lifetime coverage until the age of 100.

Why Hybrid Life Insurance is a good deal?

On the other hand, hybrid life can be designed like term life insurance at a cheaper cost compared to whole life.

Since, hybrid insurance does not build excessive cash values, it acts like term life insurance, but the premiums have a no lapse guarantee, which can be selected to last until age 85, 90, 95, or 100.

This will allow you to continue your coverage at the same cost even if you live to a very old age.

Sounds good!

But, what happens if I live longer then the initial period selected?

If you live beyond the originally selected age, the death benefit will simply begin getting smaller, while the original premium will always remain the same.

So, premiums can be scaled to coordinate with your desired budget and the death benefit required for your family. As long as you continue to pay the no-lapse guaranteed premium your coverage will remain in force.

Hybrid universal life is slightly more expensive then term insurance at younger ages, but the price difference lessens as people get into middle age.

Hybrid Life Insurance Quotes

How much does hybrid life insurance cost?

To get your hybrid life insurance quotes online use our life insurance calculator.

“You can select coverage for 10, 15, 20, or even 30 years (cheapest)”

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