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Universal Life Insurance

Guest post by: John Clark

Article Overview: In the early 1980’s a new, more flexible version of whole life insurance entered the indemnity business world. This new life insurance was known as Flexible Premium Adjustable Life Insurance, or, more simply put: Universal Life Insurance. Very similar to whole life insurance, ULI showcases a savings constituent that flourishes on a tax-deferred basis. A fraction of the premiums are invested by the life insurance company through a variety of facets including: mortgages, money market endowments, and bonds. The revenue accrued through these investments is directly credited to the insurance policy, tax-deferred. An assured minimum interest rate applied to the life insurance package means that no matter how the individual investments do, the insurance policy is going to retain a minimum yielding on the money.

Universal Life Insurance

In the early 1980's a new, more flexible version of whole life insurance entered the indemnity business world. This new life insurance was known as Flexible Premium Adjustable Life Insurance, or, more simply put: Universal Life Insurance. Very similar to whole life insurance, ULI showcases a savings constituent that flourishes on a tax-deferred basis. A fraction of the premiums are invested by the life insurance company through a variety of facets including: mortgages, money market endowments, and bonds. The revenue accrued through these investments is directly credited to the insurance policy, tax-deferred. An assured minimum interest rate applied to the life insurance package means that no matter how the individual investments do, the insurance policy is going to retain a minimum yielding on the money. A Universal Life Insurance policy allows the member to choose from two different death benefit selections. The first option pays the death benefit out of the insurance policies cash value, meaning the more value that grows within the policy, the less the insurance company is actually responsible for, meaning your policy comes at a cheaper rate. The second options pays the actual face worth of the policy established in the policy contract, plus any cash worth that has accumulated through various investments although, the second options comes with higher annual premiums.

Most Universal Life Insurance policies offer a no-lapse guarantee as long as the minimum selected premium is paid on time. The only down side to this is that paying the minimum assured premium is infrequently enough to amplify the cash value of the policy.

There are a variety of benefits associated with Universal Life Insurance:

• Flexibility

• Lower premiums

• Solid death benefits

• Access to cash value

• Allows members to pay billed premiums

• Allows members to pay more than the billed premiums

• Allows members to pay less than the billed premiums

• Gives the policy owner the ability decided how much of a premium he/she will pay and when they will pay it

When deciding how much Universal Life Insurance coverage is needed, you have an amazing opportunity to offer additional financial protection to you and your beneficiaries. It is important to group together the financial responsibilities in order to calculate how much life insurance is needed. Financial obligations can be categorized into three categories: final expenses, loss of income and financial debts. The cost of funerals has skyrocketed over the last few decades and careful consideration regarding the amount of money needed for an interment is important in evaluating final expenses. Additionally, examine the amount of income the family or beneficiary will lose when you die. Finally, add up all concurrent financial debt and include this amount in the final number. In most cases the best rule is to have a policy that is five to 10 times your annual income.

Universal Life Insurance is a permanent form of life insurance. If offers the great benefits of whole-life insurance with additional flexibility, affordable premiums and solid investment opportunities. There are a plethora of well-known life insurance companies that offer reliable Universal Life Insurance plans to Americans looking to secure their future and provide loved ones financial confidence

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Article Tags: 1980s, bonds, business world, constituent, endowments, facets, flexible version, indemnity, insurance package, insurance policy, interest rate, investments, life insurance company, minimum interest, money market, premiums, showcases, universal life insurance, whole life insurance
Referred by: http://www.franchisefix.com/



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