Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

The Basic Facts About Universal Life Insurance Policy

By Elissa Joyce Subscribe to RSS | December 14th 2011 | Views:
loading
 
  



Known for its flexibility and cash value, a universal life insurance policy has been introduced in the life insurance market sometime in the 1980s. This is a flexible version of the whole life insurance. It is also referred as adjustable life insurance policy and quite different from whole life insurance policy. A universal life insurance is the best investment you can give yourself and your family.

The Benefits of Universal Life Insurance:

Aside from its flexibility, a universal life insurance has a savings feature that is tax-deferred. The company that provides you with a universal life insurance invests a part of the premiums you paid in mortgages, money market funds or bonds. The tax-deferred income generated from this investment is credited to your universal life insurance policy.

Every life insurance policy has guaranteed minimum interest rates applied to it, usually about 4 percent. This means your insurance company guarantees a minimum return on your premium that it invested even if the investment did not perform well. If the investment performed well, the return in the form of interest rate on the accumulated cash values will increase. There are permanent life insurance quotes available online that you can use to compare different insurance products.

Meanwhile, there are two death benefit options that you can choose from. One option allows the payment of death benefit from the cash value of the policy which make this the cheapest among the two options. The second option provides payment of the amount stated in your policy, in addition to accumulated cash value.

Many insurance companies are offering a no-lapse life insurance guarantee provided that the minimum designated premium is paid. This gives you a policy that is in force and valid up to age 100. However, do not expect to accumulate significant cash values if you are only paying the guaranteed minimum premium.

An Overview of Universal Life Insurance Premiums:

Do not confused universal life insurance with whole life insurance. These are two types of permanent life insurance with one having different features from the other. The good thing is, you can access permanent life insurance quotes for these two policies.

With whole life insurance, you are required to pay billed premiums on or before the end of the stated grace period. Failure to do so would put you at risk of a policy lapse. Meanwhile, policy holders of universal life insurance can pay the billed premiums, more or less than the billed premiums or no premium. They also have the option to pay the premium at any other time and the flexibility on the amount to be paid.

The universal life insurance is a flexible and adjustable version of the whole life insurance. Gone are the days when an insurance policy is inflexible when it comes to cash value, death benefit and premiums. However, despite its flexibility, there are still rules covering the premium payments for universal life insurance. Although you may choose the no premium scheme, any payment that you will make should be no less than the minimum amount in order for the insurer to manage the expenses of premium processing and collection.

Normally, the premiums for a universal life insurance are minimum, target and maximum. If you opt for the minimum premium, payments are made annually and in the amount that is enough to keep the insurance policy in force and valid for another year, but without any cash value accumulation.

The target premium is the amount needed to keep the insurance policy in force and valid all throughout the life of the insured. Meanwhile, a maximum premium allows the insurance policy to retain its life insurance character.

Elissa Joyce - About Author:
If you need more information and help in choosing the best type of universal life insurance policy to buy, click on lifeinsurancegroup.com

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

Article Source:
http://www.articleside.com/insurance-articles/the-basic-facts-about-universal-life-insurance-policy.htm

Related Insurance Articles Subscribe to RSS

How to get the cheapest car insurance
Published by Harrisonford on February 28th 2012 | Insurance
You think that cheap car insurance does not exist? Well you are wrong about it. You can actually get...
 
 
Best and Inexpensive health insurance
Published by Lessardcasey on February 11th 2012 | Insurance
The place to start to search for inexpensive health insurance if you have a low income or if you hav...
 
The best insurance packages live in Maryland
Published by Insuranceindian Aauto on March 5th 2012 | Finance
Auto insurance is something that any motorist in Maryland needs to have. Many people would try to ov...
 
Provide the best insurance for your car with the best insurance quotes
Published by Jameshaven on March 5th 2012 | Insurance
You just purchased a car recently, it is now very important for you to secure your car with the car ...
 
Expert in different types of insurance and customized insurance services
Published by Caden on June 14th 2012 | Insurance
Insurance Express is an insurance provider of auto, car, commercial or business insurance etc. Other...
 
Just where to get the best car insurance packages in Ohio
Published by Usautoinsurances on January 17th 2012 | Insurance
It is illegal to drive your car on the Ohio highways without proper auto insurance. Some people shun...
 
Resources for searching cheapest van insurance
Published by Gregorypeck on March 19th 2012 | Insurance
There are various sources from where an individual can buy cheap van insurance. Comprehending where ...
 
Business insurance guide for young capitalists
Published by Andrew Edwards on December 16th 2011 | Insurance
Starting up a business is not that big deal now, lots of options we have that will make it quite eas...
 
Best Individual medical health insurance
Published by Lessardcasey on February 11th 2012 | Insurance
Individual medical health insurance can be a financial burden, but for many people it is a necessary...
 
Buying term insurance online - a way to save premiums
Published by Chris Luke on April 26th 2012 | Insurance
Term insurance is a commonly purchased policy in current times as it is the most suitable plan that ...
 
Tips to choosing the Apt travel insurance policy online
Published by Sandy Tata on April 20th 2012 | Insurance
Travel insurance has become the need of the hour for travelers. The needs of every person setting ou...
 
Limitation of cheap classic car insurance
Published by Katiehomles on February 25th 2012 | Insurance
You bought a classic car and now you worry about worry its maintenance. The classic car insurance is...
 
Coverage commercial general liability insurance offers to insured company
Published by Andrew Edwards on May 22nd 2012 | Insurance
CGL is quite popular plan while business owners want to cover-up the liability issues and transfer...
 
Tips to get cheap car insurance
Published by Harrisonford on March 1st 2012 | Insurance
If you are car owner and you know the law then you definitely know importance of car insurance. Car ...
 
Online term insurance - Guide to choose the best one
Published by Chris Luke on April 16th 2012 | Insurance
In the Indian insurance segment, there are many kinds of term insurance policies that suit different...
 
Getting the best Georgia auto insurance
Published by Auto Insurances on January 17th 2012 | Finance
As the state of Georgia is very notorious for having a big number of car accidents and also incident...
 
Affordable medical insurance procedure
Published by Lessardcasey on March 28th 2012 | Insurance
Medical treatments and preventative care are not cheap. For the 40 million citizens of the United St...
 
Finding cheap car insurance with best coverage
Published by Robmichae on March 16th 2012 | Insurance
Everybody is seeking ways to reduce their monthly expenses in today’s economy. As a matter of fact...
 
Vauxhall Corsa Insurance gives you best insurance
Published by Ahmadgill on January 26th 2012 | Insurance
Now a day our company is committed in giving you cheap insurance and cutting rates on Vauxhall Corsa...