Universal Coverage cheap auto insurance quotes full coverage
. Death benefits do not begin and end with whole and term policies. Universal options are also available to help individuals customize their coverage to meet their needs. If you like the sounds of investing with a whole life policy but cannot afford more than a traditionally inexpensive term one, a universal one may be right for you.
Also known as Flexible Premium Adjustable Life, these plans offer some variations that make them more affordable than whole, but still slightly more expensive than term.
Key Savings Element: If investing in something with actual returns, rather than just a death benefit, is appealing to you, universal life may be a good choice. The insurer will invest a portion of your premiums in various funds.
Guaranteed Interest Rate: A low but guaranteed interest rate means that you will not lose money no matter how poorly your investments perform. However, in an average ten year span, you would expect higher returns from more risky types of savings and investment programs.
Two Choices: Option A is cheaper and allows individuals to take their death benefit out of the policy's cash value, placing less risk on the insuring company. However, the payouts can wind up being smaller than expected. Option B pays a set amount in addition to the cash value, and therefore, costs more to establish but has better returns for your beneficiary.
No Lapses: As long as you pay your minimum premium, you have coverage til the end of your days.
Flexible Death Benefit: With universal life, you have the ability to adjust your death benefit in the face of changing financial circumstances, increased (or decreased need), and the fluctuation of your income. This means that your premiums can fluctuate as well. A word of warning: paying too little for too long can cause your coverage to lapse, so be careful.
Posted by: , Posted on 2018-6-28 12:35