shopify analytics ecommerce

Universal Life Insurance

How Universal Life Works

Consider universal life insurance. One of the more popular permanent policies is the universal life policy. What is this universal life all about anyway?

This policy is permanent insurance which allows for flexibility in premium payments as well as in death benefit amounts. Think of this policy as a savings account with a life insurance policy attached.

Protect Your Family With Life Insurance - Save!

More On Universal Life Insurance

  • Premium Payments

    Unlike other types of life policies your premium payments are deposited into a savings account which earns interest on your money. Monthly withdrawals are taken from your account to pay administrative costs and life insurance premium costs.

    You can enter into a contract with the company of your choice to deposit money into your account on a regular basis like you do with any other policy. Your premiums can be monthly, quarterly, half yearly or annually.

    On the other hand, you may choose to deposit larger amounts into your account in a less frequent manner. You can make your deposits in your universal life insurance account whenever you feel the need or desire to do so.

    It does not matter which way you choose to go. The important thing to keep in mind is that there always needs to be sufficient money in the account to take care of the premium payments.

    The company includes in your contract a minimal guaranteed interest rate on the money in your account. As long as you keep depositing the minimum amount required your universal life policy cannot fall into a state of lapse.
  • Savings Element

    You may want to know if it would be better to buy term insurance and just put the rest of the money into a savings account. The savings portion of your deposit has a guaranteed interest rate.

    You can deposit money when you want to. Term life insurance is temporary insurance. You buy a term policy for a specific number of years. If you need life insurance after that period of time you may not be able to qualify for it.

    You may want to use your saving plan for a college fund for your children or possibly to top up your retirement fund.

    The life insurance attached to your plan, though term based, lasts much longer that the better known term policies. You can keep your universal life insurance policy for the rest of your life.

    You can reduce the amount of death benefit any time you choose. You can also increase the death benefit but, depending on age and physical condition you may need to prove that you qualify for the additional coverage.
  • Policy Riders

    You can add the waiver of premium rider to your policy. This provides that if you should become disabled for a minimum of 6 months the insurance company will pay your premiums for you for as long as you are disabled, even if it is for the rest of your life.

    You can also add the double indemnity rider to your policy which provides double the death benefit if your death occurs accidentally.

    All the better life insurance companies sell universal life policies as well as term and whole life.

Save on Low Cost Life Insurance

Home | Life Insurance Articles | Universal Life Insurance Explained

Copyright © 2004 - 2019 LifeInsuranceHub.Net. All Rights Reserved.

Protect Your Family With Up To $1,000,000 No Exam Term Life Insurance

Tools And Resources

Life Insurance Need Calculator

Recent Articles

  1. Affordable Life Insurance - Term And Permanent Life Insurance

    The amount of spendable income an individual has helps determine what is affordable life insurance.

    Read More

  2. Personal Life Insurance - Present And Future Needs

    You have been hounded by life insurance agents from your senior years in college. You just didn't see the need to buy personal life insurance.

    Read More

  3. Term Life Insurance With No Medical - Non Medical Term Insurance

    Some people don't understand how you can buy term life insurance with no medical required. They are under this illusion that in order to issue such policies the premiums have to be higher than the nor

    Read More

  4. Term Life Insurance No Exam - Term Insurance No Medical Exam

    Term life insurance no exam necessary. These days, it appears that, everyone wants to buy term life insurance.

    Read More

  5. Best Term Life Insurance - Best Term Insurance Coverage

    Finding the best term life insurance policy can be a very tedious exercise. What really is the best? It is important to make a decision as to why this life insurance is needed in the first place. We t…

    Read More