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

70-680 - the High Quality in Your life
Published by Hanliu1003@hotmail.com on December 7th 2011 | Business
With increasing importance of information technology in nearly all industries and organizations, a C...
 
Go to a measurable life that will be the reason of your success one day
Published by Dion Sivla on April 4th 2012 | Business
They are the one who actually invented the measurement scoops which will actually helps the consumer...
 
Zadroga attorney is a life savior for the 9/11 attack victims
Published by Jennifer Weinstein on December 12th 2011 | Business
Zadroga Attorney plays a very important role in helping the sufferers of 9/11 attack in getting a re...
 
The best site for Idaho auto insurance
Published by Auto Insurances on January 16th 2012 | Business
Although Idaho is one of the least crowded states in the United States, it does not mean that living...
 
Purchase an edge over the rest with mcitp certifications - the High Quality in Your life
Published by Water123 on December 6th 2011 | Business
A network+ certification is feather in the cap of any IT professional because the accreditation will...
 
Choosing the best life insurance quotes amongst all available
Published by Alex Alben on December 14th 2011 | Business
Not every one understands the importance of life insurance policies. But those who understand know t...
 
Dental insurance billing services help maximize revenue
Published by Outsource Strategies International on February 3rd 2012 | Business
Dental insurance billing can help dental practices streamline their revenue cycle. Proper dental ins...
 
What can be done to enhance your camera battery life?
Published by Michael Thompson on June 18th 2012 | Business
As we are aware of the various electronic devices that use batteries as their source of power, so do...
 
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...
 
Refresh your life with junkstarbags
Published by Smith Lara on February 2nd 2012 | Business
Replenish your atmosphere with the use of junkster bag. The everyday life of all humankind to endure...
 
Enjoy your life with second hand cars for sale in Gurgaon
Published by Dany on July 19th 2012 | Business
Trend of buying used cars in Gurgaon is growing rapidly. Now, not only the car market with new cars ...
 
Criminal Defense Lawyer - Do Not Let False Claims Mess-Up Your life
Published by Dimitri Kontou on December 15th 2011 | Business
Choose the right legal attorney so that he can represent you in court smartly and fight for you agai...
 
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...
 
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...
 
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...
 
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...
 
Role of electricians in the industries and our day to day life
Published by Ema Sis on April 5th 2012 | Business
Electricians play a significant function within our life to make sure safety along at the wiring app...
 
Sunny flats – a perfect way of living a blissful life
Published by Deepti on March 21st 2012 | Business
Mohali has witnessed outstanding growth and development in the last couple of years. The place with ...
 
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...
 
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...