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However, because the requirement to maintain cash value has been waived, the policy is perhaps better defined as "level premium term life insurance until death." On the face of it, such a policy design mimics the most important element of a Whole Life policy: a level and fixed premium. At least one requirement of a typical Secondary Guarantee policy is that the specified premium must be paid immediately upon billing. A No Lapse/Secondary Guarantee Universal Life policy, however, will waive the requirement to maintain positive cash value and will sustain the policy until the death of the insured in spite of the fact there is no cash value. If a policy's cash value doesn't follow the mathematic model (gradual increases, in turn causing decreases in net amount at risk), the policy will lapse when the cash value falls to $0. The policy owner is responsible for making certain that cumulative payments - plus changeable policy interest credits - will be sufficient to maintain and balance the cash value and net amount at risk elements. Traditional Universal Life policies - which will be described in greater detail in the next post - have unscheduled and unspecified premiums.

However, because of the extremely long joint life expectancies and the adverse selection inherent in term life insurance, few if any insurers offer second-to-die term policies. As previously described, Universal Life is a flexible premium policy that largely shifts the responsibility for policy sufficiency to the policy owner. Offerings of policies without specified premiums include Universal Life, Variable Universal Life, Adjustable Life, and Equity Indexed Life. s discussed elsewhere, a key distinction among today's life insurance policies is whether or not there is a specific, guaranteed premium. As with other survivorship policies, Survivorship Secondary Guarantee Universal Life functions similarly to its single insured cousin. Families with budget constraints but long-term or life-long insurance needs might find the Secondary Guarantee policy a good premium compromise between term and Whole Life policies. He further discusses the best uses for Secondary Guarantee policies, but their dominant benefit is a fixed and guaranteed premium that is substantially lower than that of a Whole Life policy. In such policies, it's unlikely that meaningful cash values will accrue beyond the 10th or 15th year.