Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Universal Life Insurance Policy: the Most Flexible Policy for You

By Elissa Joyce Subscribe to RSS | December 5th 2011 | Views:
loading
 
  



After you have decided to buy a whole life insurance policy, there are still many options with varying features. But given the flexibility offered, universal life insurance policy is the best; provided you can keep watch on the market trends and can keep the dates for paying the premiums. It is true particularly for the initial phase of the policy when you have not enough saving with the policy to pay your premiums through the savings only.

Like other whole life policies, this policy offers coverage for whole life and the nominees here are to get considerable amount in case of death of insured person. The additional benefit comes as the saving feature. You don’t only pay the premiums, which is kind of cost of the insurance; but you also pay an additional amount with the premium that goes into your savings. This additional amount earns interest on it. As it is invested in equity market as well, you may find it multiplying faster than any bank savings. But herein lies the risk – the share market can occasionally harm you, when the stocks of the company your money is invested in, come down.

There are options of blocking your money from being invested in the stock market for the time being. And later when you think the market is back to normalcy and you can take risk of investing, you may ‘switch on’ the process.

This additional feature of saving brings you another benefit. It is flexibility of paying your premiums from the saving component of your deposits with the insurance company. As you may easily appreciate, it can be taken advantage of only after you have deposited the premiums for a certain number of times. It is only after you have accumulated your savings that you can pay your premium from it. So it adds to the flexibility for you.

The premiums are to be paid on a monthly basis in this policy. But the saving component accumulates and you earn interest on it as one does with his/her investments. The terms last longer than other policies as it brings benefits of flexible investments. The usual minimum term lasts 20 years.

The flexibility is not limited only to the option of paying premiums from the savings. You deserve and have flexibility to adjust and readjust the premium amount during the term, but the premiums affect the cover amount as well.

You have to keep eye on the market fluctuations as the interest rate fluctuates with the stock market fluctuations. The prices of stocks the insurance company invests in, decide the interest rates on your savings with the insurance company. Usually a certain percentage of your savings amount is invested this way. But in any case the algorithm is made clear to the buyer at the very time he buys the policy.

Suppose you foresee or guess that the stocks would fall in the market. You have such options like you can ask for holding your money from investing in stocks. You can switch off and again switch on the investment for a certain number of times every year. By exercising switching off option, you can protect your savings from the market risks.

Now suppose the stocks get sky high soon after you bought the policy. In this case you may even get rid of the burden of paying premiums for ever. Now you may like to switch off the option of investing in stock market and relax as you would not have to pay anything then onwards.

But you may like to have an eye on the market even after this as well. This you would do intelligently or greed fully (it is how you take it) in order to squeeze more from the markets by seeking a bright time to switch the option on.

The death benefits are less than that with whole life insurance and you have additional burdens of keeping track of the markets and keeping changes in saving and premiums accordingly.

It has a benefit of permanent life insurance policy as you are covered throughout your life. The flexibility factor is additional and you can appreciate the pros by comparing various permanent life insurance quotes. You can easily get them over the internet.

Elissa Joyce - About Author:
The flexibilities of adjusting and readjusting the premiums and savings with the universal life insurance policy or permanent life insurance quotes give it a competitive edge over other policies. If you can have track of market fluctuations, it is a good avenue not only for insurance but also for investments.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/universal-life-insurance-policy-the-most-flexible-policy-for-you.htm

Related Business Articles Subscribe to RSS

ColorFx- Closer to real life
Published by James Blee on May 11th 2012 | Business
According to one recently concluded survey, the fan following for colorfx is on the rise....
 
Increase the shelf life of perishable goods
Published by Jennie Garth on July 31st 2012 | Business
Fast paced urban life has very less time, to go for freshly prepared products and households commonl...
 
Esee Knives can mean the difference between life and death in dangerous situations.
Published by Mary Porter on June 29th 2012 | Business
Esee knives are made in the United States, but you can buy them in a several places in Europe. It is...
 
Why Boiler insurance is Important No Matter What the Time of Year
Published by David Samson on March 23rd 2012 | Business
This articles looks at reasons why it is important to take out boiler insurance even when the weathe...
 
Europe wide insurance for motorbike breakdown cover
Published by Tom Green on May 16th 2012 | Business
This article is about the different types of breakdown cover available across Europe for Motorcyclis...
 
Hot tubs bath for healthier and happier life
Published by Ashish Pandey on December 24th 2011 | Business
Hot tubs bath can be very refreshing for one and all. These can allow you to get a complete facelift...
 
Simple Tips to extend the life of your car
Published by Nicolevickers on April 14th 2012 | Business
Proper car maintenance involves hard work and perseverance. In order for your car to function well, ...
 
Fast and efficient insurance verification services for healthcare facilities
Published by Outsource Strategies International on January 12th 2012 | Business
Fast and efficient insurance verification services for healthcare facilities simplify the workload o...
 
Professional liability insurance
Published by Francesca on December 1st 2011 | Business
More and more professionals and companies decide to protect themselves by insuring themselves with a...
 
Ask a Product Design Consultancy to bring your dreams to life
Published by James Blee on June 19th 2012 | Business
Some of the greatest inventions have begun life with a simple flash of inspiration. It’s what you ...
 
Honda Parts for long life of vehicles
Published by Julia Roger on July 17th 2012 | Business
The spares belonging to reputed brand has the ability to ensure consistent maintenance like spark pl...
 
Connection coaching for better quality of life
Published by Ashish Pandey on June 7th 2012 | Business
Connection Coaching can offer you a good life with constant evolution. It can be great for your over...
 
Aerocity Mohali- a perfect destiny for a magnificent life
Published by Deepti on March 23rd 2012 | Business
The task of buying and selling property in tricity can be nail biting. The urban part of Mohali is a...
 
De-cluttering life, one storage idea at a time
Published by Simon Dcruz on March 1st 2012 | Business
Self storage solutions are what come to mind in situations like these. One can rent as much space as...
 
70-680 - the High Quality in Your life So Great
Published by Water123 on December 24th 2011 | Business
With increasing importance of information technology in nearly all industries and organizations, a C...
 
You life wrapped up in cardboard boxes
Published by Mary Porter on June 25th 2012 | Business
These memories that we pack into these cardboard boxes may not even be looked at for many more years...
 
Dream house with unique designs looks perfect for today’s life style
Published by Jake Hecht on January 13th 2012 | Business
The world’s best luxurious home at dream estate can build unique home in a reasonable cost. We are...
 
The increasing pace of life florist winnipeg
Published by Roney on February 6th 2012 | Business
Get flowers delivery in winnipeg online is not really so different from his physical purchases direc...
 
A lavish life style with real estate Chandigarh
Published by Deepti on March 22nd 2012 | Business
Chandigarh is the best destination when it comes to real estate investment. Buying a property in Ch...
 
Where to search for the best car insurance quotes?
Published by John Nikolas on November 30th 2011 | Business
Are you looking for good car insurance quotes? If so then internet is the best place that can help y...