What is Universal Life Insurance?
Universal Life Insurance is a permanent type of life insurance that is based upon having a cash value. Any payments made which are over
the cost of insurance get credited to a cash account. The cost of the insurance is subtracted from the cash value. The policy will pay interest, or an indexed
rate upon the cash value of the policy. Some policies may be indexed to stock market rates like the S&P 500, which means they can provide market-like returns. However,
they may also have a guaranteed rate, so an insured person does not risk negative growth!
One advantage of universal life over whole life insurance is the ability to grow more of a cash value, and the fact that these policies
are very flexible. A policy can adjust the period premium, the cash value, and even the policy death benefit based upon needs. The next advantage of universal life insurance
is the potential for greater returns in the cash advance. The last advantage is that contracts allow zero interest (wash) loans which allow the policy owner to use the
cash value of the policy with no tax impact. Many people a universal policy as both a life insurance policy and a savings or retirement plan!
Note: Do not go with the first life insurance advertisement you see, but compare quotes to find the
Cheapest Universal Life Insurance Rates for the best value!
|
Cheaper Universal Life Rates By Comparing Quotes
Compare Multiple Policies with One Short Form
Start Your Free Universal Life Quote Here!
|
