Is Universal Life Insurance A Good Investment?
This is one of the most sought after questions
. Many people often confuse between term and universal life insurance. But from the experts point of view, both are a good investment if you pay standard premium amount timely and your coverage is for a long term.
Applying for universal life insurance is truly a wise idea as the insurance is more flexible than term life insurance. The main advantage is that premiums can be adjusted on the basis of your current cash flow. If your income is quite decent, you allow increasing your premiums. In case you are not able to pay at the same flow, you can decrease your premiums. Also the death benefit can even increase or decrease according to your need. Although, to get good return from your universal life insurance, you should have to wait for at least 15 years or more. In most cases, your premium and death benefit will remain the same. It is because your premiums are used in the stock market and mutual funds. If the fiscal rate is high, you will get whopping amount. If the stock market is down, your interest rate automatically goes down.
In the United States, the cash value of your universal life insurance is tax-deferred until you decide to make a withdrawal. It is why the insurance is quite popular in this country and numbers of top insurance companies have appointed special agents to guide people about the benefits of universal life insurance. Changes in the policy have been seen in April 2005. To make this policy more flexible additional choices are included-single premium, traditional and interest sensitive to give maximum coverage. Its quite essential to differentiate between these choices before applying for the insurance.
The traditional option is somewhat like an adjustable-rate mortgage where your cash value return is not exactly the guaranteed rate return. If money is no object, its good to go with the single-premium option. Like other options, it provides the cash value and tax benefits. The interest-sensitive option is quite popular in America as you offer to increase your death benefit without increasing your premiums. However, the benefit mainly depends on the current condition of the economy.
How to Get Good DealUniversal life insurance quotes
comparison is quite beneficial for people who are seriously thinking to get the insurance. Insurance agents provide quotes to potential customers to disclose the terms and costs of purchasing a policy from their respective company. Online comparison is good as it will save your quality time and from harassment. Going directly to the insurance company website allows you to make your own comparisons and able you to understand the policy features like investment options and coverage options.
You just need to enter your age, smoking status, gender and desired amount, within a few seconds you able to see quotes of various companies. After that process you need to enter your desired premium amount and investment return assumption, the practice will able you to show the firm doing better under your assumption.
If you are not very much aware of pros and cons of universal life insurance, its better to take help from an expert agent. Many insurance firms provide online customer support. If you have any confusion, try to ward off it before applying. Its good to discuss with your friends and family members who have already taken this policy. They may able to tell you the actual benefits of universal life insurance.
Reading online articles is also helpful to understand the policy. Without discussion and proper query, dont jump for any policy. Weather it is term life insurance or permanent insurance, take your time before taking anyone. Both are good investment for the sake your family future. If you love your family, its good to look for the best insurance that you will able to continue and will give enough support to your family even after your death.
by: Elissa Joyce
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