What Is Universal Life Insurance?

Type of flexible Universal life insurance offers affordable term life insurance protection and savings element (like whole life insurance), which is invested to provide the present value of the collection. Death, the savings element and premiums can be reviewed and amended as circumstances change the policy. Moreover, unlike life insurance, universal life insurance allows the policyholder to use the interest of his life savings to help pay the premiums.

Flexibility

The death benefit, premiums, and cash value are perpetually adjustable in the hands of the policyholder. In capable hands, that makes universal life insurnace a more useful investment vehicle.

(For more detail, read "Flexibility in Universal Life Insurance." For maximal flexibility, learn about variable universal life insurance.)

Transparency

Other types of life insurance, you pay a certain fee is required, and you never see what the insurance companies make money. Once the general insurance, although it is not necessary for the premium you pay when you want, what you want.

Taking the cost of insurance, then? Instead of requiring periodic payments to you, it's a recurring charge against the value of your cash account, a charge for administration, a charge of conflict of interest that a charge for freight, etc to see exactly what the costs your policy on your part. Understand the costs of its policy is useful because the flexibility of universal insurance allows you to make changes that affect the cost of coverage.

Affordability

It is true that universal life is not as cheap as term life insurance, but is much cheaper than whole life insurance. How can it be cheaper and give customers maximum freedom at the same time? In the real world, "freedom" means "responsibility" and is shifting the responsibility of the insurer to the policyholder universal life insurance that cuts insurance costs.

Whole life insurance guarantees a fixed rate of growth of cash value, death benefits and sets a fixed rate. By modifying or rejecting these guarantees, life insurance companies can reduce the cost of life insurance products.

Who Should Buy A Universal Life Insurance?

Universal life insurance can be used for innumerable purposes. Popular applications include, but are not limited to:

The tax position of investment instrument.

Protecting a company (which, by the death of an owner).

Protect against the liquidation of an estate.

The pension scheme.

4 comments:

Anonymous22 June 2011 at 06:37
I got to agree with everything you said. Universal Life Insurance is a great investment. I shopped for my policy using http://www.lifeinsure.com/. It was the best investment I've made in years.
Anonymous26 September 2011 at 21:05
Whole Life Insurance is permanent life insurance designed to last through your life expectancy. I am looking for some affordable life insurance plans. Please suggest me.

affordable life insurance
stave olion13 January 2012 at 03:36
Really amazing post, I am going to bookmark your post see u again thank you so much.

Universal Life Insurance
Unknown26 January 2016 at 06:40
Good day I am so glad I found your webpage, I really found you by accident, while I was searching on Bing for something else, Anyways I am here now and would just like to say thanks for a tremendous post and a all round thrilling blog (I also love the theme/design), I don’t have time to look over it all at the minute but I have bookmarked it and also added in your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the fantastic work. Cheap Health insurance in Houston

Monday, 25 April 2011

Universal Life Insurance