A Closer Look at Universal Life Insurance
2:26 AM
Universal life insurance is a kind of continual life insurance. As a policyholder, you have the ability to be able to determine the value of the policy. You can alter the benefit or the amount of money you put in throughout the duration of the policy to accommodate certain life events.
With a universal life insurance policy part of your premium is posted toward your death benefit payments and the rest of your premium is invested to create an income generating policy. During the course of the policy the policy holder can change the values of the death benefits, premium payments and investment portions of the policy. This can not be done with other types of investments.
Universal life insurance policies are often used as collateral because they are considered a type of income. Also, depending on the specific policy, the policy holder may be able to draw cash from the policy to cover an unexpected expense.
These policies are often preferred because of the potential to do well with the investments being made with the policy. While no form of investment is ever guaranteed completely, universal life insurance policies generally perform very well. Policy holders are often guaranteed a certain minimum rate of return.
Universal life insurance policies also offer a few tax incentives that other policies do not offer. The policies are Federal tax deferred until the policy is cashed out. This has great advantages during the course of the policy. Also, beneficiaries, under current tax laws, receive their payouts after your death income tax free.
Because the cost of insurance generally goes up each year, securing a universal life insurance policy may be in your best interest. This way you are in control of the premiums and payouts through out the term of your policy.
You should do your due diligence on your life insurance options cautiously with your family and an insurance agent. These are imperative decisions that need to be weighed carefully. Just like anything else that matters, find out all you can and only deal with an esteemed insurance company. Confirm all the charges and commission payments, as these will vary from company to company.
Lastly, only sign up for the policy after you know all the facts. Universal life insurance policies are wonderful, but may not be suitable for everyone.
With a universal life insurance policy part of your premium is posted toward your death benefit payments and the rest of your premium is invested to create an income generating policy. During the course of the policy the policy holder can change the values of the death benefits, premium payments and investment portions of the policy. This can not be done with other types of investments.
Universal life insurance policies are often used as collateral because they are considered a type of income. Also, depending on the specific policy, the policy holder may be able to draw cash from the policy to cover an unexpected expense.
These policies are often preferred because of the potential to do well with the investments being made with the policy. While no form of investment is ever guaranteed completely, universal life insurance policies generally perform very well. Policy holders are often guaranteed a certain minimum rate of return.
Universal life insurance policies also offer a few tax incentives that other policies do not offer. The policies are Federal tax deferred until the policy is cashed out. This has great advantages during the course of the policy. Also, beneficiaries, under current tax laws, receive their payouts after your death income tax free.
Because the cost of insurance generally goes up each year, securing a universal life insurance policy may be in your best interest. This way you are in control of the premiums and payouts through out the term of your policy.
You should do your due diligence on your life insurance options cautiously with your family and an insurance agent. These are imperative decisions that need to be weighed carefully. Just like anything else that matters, find out all you can and only deal with an esteemed insurance company. Confirm all the charges and commission payments, as these will vary from company to company.
Lastly, only sign up for the policy after you know all the facts. Universal life insurance policies are wonderful, but may not be suitable for everyone.
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