Policy holders are very much interested in universal life insurance because they can make money out it. Policy holder selects this particular policy to make some extra money through investing them in insurance of this kind. Main purpose of this plan is to provide benefit in form of cash to the beneficiary. Where the benefit accrued from this particular policy will be hand over to the beneficiary. The money will be handed to the beneficiary only after death of the insured. All though is that this combination will be a perfect one? Is there is any possibility of this plan can go wrong at some point of time? This article will answer all the questions and will give you clear picture.
• To simply put -Combination of the benefits of both term and whole life policy is universal life policy. It is also a permanent plan. Cash benefit is the key aspect in this policy. Cash benefit will be handed over to the beneficiary after the death of the insured. Policy will also get lapsed after the death of the insured. Owner of the policy has to pay these charges to keep the policy active. Charges like service charge, cash value, cost of insurance coverage. Premiums are high comparing to other policy you have make huge amount as premium. This plan is no easy as we thinking it has both the sides in it. Where risk factor is also high.
• Benefits: The quote can be obtained in very simple ways like the instant life insurances. Rates of the insurance are also calculated same as in the instant term life insurance. Universal life insurance is more flexible than the instant life insurance this is the main advantage. than the instant life insurance this is the main advantage. You have another option over here you can dictate the amount you are going to pay this month. In case if you have any financial backlog this month you can pay the rate later without any interest. Also have protection with low risk. Another main advantage is you would have an interest on the plan’s cash value in market rate.
• Pit falls: Account is not flexible this is main disadvantage of the plan. If you don’t want to continue with this plan you don’t have an option to change the plan. You have to continue with the same plan. You have only one option, have a talk with the insurer and inform them you are not interested in the plan. Now they will order for stop paying the premium. The benefits from this type of plan may be big but you have to consider the disadvantage as well. Do not purchase the plan for their benefits. Accumulation of the cash value is with you but there is no guarantee of its growth.
• Will it provide you the same coverage? – Just like other plans that have cheap term life insurance quotes, this plan will be able to provide you the same coverage. In fact, it can be wider as universal life is considered as a permanent plan. This means that you will be protected for life provided that you intend to keep it as you live of course. The coverage is the same as what can whole life can give you. In addition, it also allows the policy owners to borrow though the reason why some people prefer it over such plan is the possibility of earning more money.
• The premiums – Major classifications under universal cover as the single, the fixed and the flexible. As the name indicates, you can pay the premiums accordingly. You can pay it at one shot if you have the necessary funding. You can pay it in fixed rate similar to the other plans that are sold as a selling point for such plans. This will let you choose your payment mode and style. The rates do not change no matter what type of payment plan that you choose. As long as periodic payments are made, you should not have any problems.
• Is this plan for you? – If you are one of those who would not willing to take chances then term life insurance quotes is the best choice for you. You will not be getting it easily for a cheap cost. You should be able to take risks and use your judgment well. There is not a semblance of a chance for it to go wrong. That’s the specialty of this plan.
Universal life insurance could be considered as an insurance plan that is liked by many, however it involves in taking big risks. You should put your mind into the buying decision and choose wisely.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on term life insurance rates and cheap term life insurance quotes, visit his site today.
No comments:
Post a Comment