What Is Ameritas Universal Life Insurance?
Ameritas offers a family of universal life policies that combine a death benefit with a cash‑value component. Unlike term life, the policy stays active as long as premiums are paid and allows flexibility in both premium payments and death benefit amounts (within limits). The cash value grows tax‑deferred based on a guaranteed minimum interest rate, plus a potential performance add‑on tied to a market‑linked index.
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Key Features of Ameritas Universal Plans
Ameritas' universal life products share several core attributes:
- Flexible Premiums – You can vary the amount and frequency of payments, though a minimum is required to keep the policy alive.
- Adjustable Death Benefit – The policy can be up‑ or down‑sized, subject to underwriting and policy limits.
- Cash‑Value Growth – Accumulates at a guaranteed rate (currently 2.0%–3.0% annually, depending on the plan) plus a market‑linked bonus.
- Loan and Withdrawal Options – Policyholders may borrow against or withdraw from the cash value, though this reduces the death benefit and may trigger taxes.
- Tax Advantages – Premiums are paid with after‑tax dollars; the cash value grows tax‑deferred, and the death benefit is generally income‑tax free.
How Ameritas Sets Its Rates
Premiums for universal life are determined by a combination of age, health, gender, and the chosen death benefit. The insurer also factors in the policy's cash‑value performance guarantees. Because the policy is a living contract, the insurer periodically reassesses the death benefit to maintain the policy's financial soundness.
Comparing Ameritas Universal Life to Other Options
Below is a quick snapshot of how Ameritas universal life stacks up against term life, whole life, and other universal life competitors.
| Feature | Ameritas Universal | Term Life | Whole Life |
|---|---|---|---|
| Premium Flexibility | High | None | Low |
| Cash Value | Yes, grows | No | Yes, grows |
| Death Benefit Adjustability | Yes | No | Limited |
| Long‑Term Cost | Higher than term, lower than whole | Lowest | Highest |
Who Should Consider Ameritas Universal Life?
Universal life is ideal for:
- Individuals seeking flexibility – Those who anticipate changes in income or financial goals.
- Retirement planners – Policies can serve as a tax‑advantaged savings vehicle.
- Estate planners – The death benefit can help cover estate taxes or provide a legacy.
Typical Costs and What Affects Them
Premiums vary widely. A 40‑year‑old male with a $500,000 death benefit might pay between $1,200 and $1,800 annually, depending on health status and chosen cash‑value strategy. The guaranteed interest rate and market‑linked bonus also influence the overall cost of ownership.
Sample Cost Table
| Age | Death Benefit | Annual Premium (USD) | Guaranteed Rate |
|---|---|---|---|
| 35 | $250,000 | $800 | 2.5% |
| 40 | $500,000 | $1,500 | 2.0% |
| 50 | $750,000 | $2,800 | 1.8% |
Is Ameritas Universal Life Right for You?
Decide based on:
- Financial goals – Do you need a flexible savings component?
- Risk tolerance – Are you comfortable with potential market‑linked performance?
- Long‑term plans – Will you keep the policy for decades, or use it as a short‑term vehicle?
Consult with a licensed financial adviser or an Ameritas representative to tailor a policy that matches your personal circumstances.