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

A perfect example for a lavish life style
Published by Deepti on March 21st 2012 | Business
Mohali real estate offers a modern and elegant life style and great commercial options for investors...
 
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, ...
 
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...
 
IBS imbalance your life with number of troubles
Published by Healthprogram on June 14th 2012 | Business

Irritable bowel syndrome (IBS) is a chronic disorder leads to cramping, changes in bowel movemen...
 
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...
 
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...
 
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 ...
 
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...
 
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 ...
 
Top facts – California auto insurance
Published by Auto Insurances on January 14th 2012 | Business
The grade point averages of the youngsters in the family will be quite attractive enough to get the ...
 
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...
 
Compare auto insurance quotes via internet- safety measures:
Published by on April 4th 2012 | Business
Selecting effective and affordable car insurance might not be an easy task, but you can simplify it ...
 
I phone application development changes the life of people
Published by Iphoneipadandroid Applicationdevelopment on February 26th 2012 | Business
Booming of the business of Iphone application brings a great potential in the field of communication...
 
Light up your life with the lights of emotion.
Published by Godawariwebsolutions on December 2nd 2011 | Business
We always dream of lighting the world but it may seem to be a distant thought in this world of high ...
 
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...
 
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...
 
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...
 
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 ...