Universal Life Insurance
A form of permanent life insurance coverage, universal life insurance has many similarities to whole life insurance but affords a greater degree of flexibility. With universal life insurance coverage, the policyholder can change, to an extent, the death benefit and the size and timing of the policy's premium. The flexibility of universal life insurance benefits allows the insured to adjust coverage as needs change over time. Likewise, the adjustability of universal life premiums empowers the policyholder to opt for higher premiums in order to build up cash value or lower premiums with guaranteed benefits. Read on for the general universal life insurance information every policy shopper should know.
Advantages of Universal Life
The single largest universal life insurance benefit is, of course, flexibility. A universal life plan can help you and your loved ones prepare for life's ups and downs. For instance, when money is tight, you can set your premium lower to make ends meet. Likewise, if you have another child or take on other major financial obligations, you can increase your death benefit if you wish. In order to make getting universal life insurance rates even easier, we've summarized the primary benefits below.
- Personalization. Tailor your universal life insurance benefit and premiums to your changing personal needs.
- Security. Universal life can help you family through unexpected hard times financially.
- Guaranteed interest rate. The rate at which your policy earns cash value is typically guaranteed not to fall below a certain level.
- Tax benefits. The policy's death benefit is received tax-free, and the cash value of the policy accrues on a tax-deferred basis.
Universal Life Considerations
As you research universal life insurance information, it's important to keep a few things in mind. One, the cash value of the policy will grow based on interest rates that are periodically changed. Should these rates drop, you might have to pay a higher premium. Two, altering your universal life insurance benefit or premiums can affect the performance of your policy and necessitate higher premiums in the future. For a policy with the flexibility of universal life but with the opportunity to invest in professionally managed funds, you might also consider variable universal life.
Universal Life Insurance Quotes
Unlike the hours spent waiting in an agents office to face a hard sell from one insurer, websites such as LifeInsuranceRates.com instantly solicit competing bids from all of the major universal life insurance providers and allow you to choose the one that best fits your needs. With an online service acting as your middleman, there is no hard sell and you are guaranteed to get the most competitive rate available tailored to your needs, without any of the work or frustration of traipsing from agent to agent.
