Universal life insurance has the most flexible plan of all life insurance policies.
Universal life insurance is essentially a more flexible form of Whole Life Insurance in that it allows the policy holder to determine their own premium payment and benefits package.
Universal life insurance's coverage plan is based on a cash value system.
Cash value refers to money that's paid by the policy holder over the amount of the premium payment and above the cost of insurance, which is paid back in cash value.
The insured receives a cash value and interest payment each month.
The interest credited back is determined by the insured, hence, where the name flexible insurance plan came from.
Only the interest payment varies within this plan, which makes this life insurance option favorable amongst policy holders.
If universal life insurance is your insurance of choice, you may want to closely look at the various options offered with this policy.
There are three types of Universal Life Insurance coverage available: single premium, fixed premium, and flexible premium.
Below, provides a description of each universal policy type for you to review.
Single Premium Single Premium Universal Life Insurance is paid by a single lump payment.
As long as the cost of insurance (COI) remains intact and is not depleted, the policy remains stable.
Fixed Premium Fixed Premium Universal Life Insurance is paid in installment payments for a set period of time but shorter than the policy is in force.
After payment time is met, the policy holder has three options to exercise.
1.
They can lower the death benefit.
2.
The insured can let the policy expire.
3.
The insured can make additional or higher premium payments.
Flexible Premium Flexible Premium Universal Life Insurance allows the policy holder the flexibility of paying their desired amount upon each premium due date.
Policy holders of flexible premium coverage are given two types of death benefits.
One offers an increase in death benefits while the other does not.
To evaluate Universal Life Insurance plans a bit more closely, let's review the pros and cons of the plan.
Pros: * You are given the option to adjust your benefits based on your individual need as time lapses.
* You have the option to pay either smaller or larger premiums.
Cons: * If premium payments are too small for too long, you could be left without insurance.
* If insurance company does not invest your money wisely, you could be forced to pay higher premiums in later years to counter act lost balances.
When looking for life insurance policy that best fits your family's needs, having a policy with flexible benefits allows you to change their premium payment amount at any time during the policy.
During your life, you might not expect road blocks to surface, but it's possible that they will.
Having the assurance that you can reduce your payments when needed, while also protecting your family's future in case something happens to you is an important factor to consider.
Universal life insurance is essentially a more flexible form of Whole Life Insurance in that it allows the policy holder to determine their own premium payment and benefits package.
Universal life insurance's coverage plan is based on a cash value system.
Cash value refers to money that's paid by the policy holder over the amount of the premium payment and above the cost of insurance, which is paid back in cash value.
The insured receives a cash value and interest payment each month.
The interest credited back is determined by the insured, hence, where the name flexible insurance plan came from.
Only the interest payment varies within this plan, which makes this life insurance option favorable amongst policy holders.
If universal life insurance is your insurance of choice, you may want to closely look at the various options offered with this policy.
There are three types of Universal Life Insurance coverage available: single premium, fixed premium, and flexible premium.
Below, provides a description of each universal policy type for you to review.
Single Premium Single Premium Universal Life Insurance is paid by a single lump payment.
As long as the cost of insurance (COI) remains intact and is not depleted, the policy remains stable.
Fixed Premium Fixed Premium Universal Life Insurance is paid in installment payments for a set period of time but shorter than the policy is in force.
After payment time is met, the policy holder has three options to exercise.
1.
They can lower the death benefit.
2.
The insured can let the policy expire.
3.
The insured can make additional or higher premium payments.
Flexible Premium Flexible Premium Universal Life Insurance allows the policy holder the flexibility of paying their desired amount upon each premium due date.
Policy holders of flexible premium coverage are given two types of death benefits.
One offers an increase in death benefits while the other does not.
To evaluate Universal Life Insurance plans a bit more closely, let's review the pros and cons of the plan.
Pros: * You are given the option to adjust your benefits based on your individual need as time lapses.
* You have the option to pay either smaller or larger premiums.
Cons: * If premium payments are too small for too long, you could be left without insurance.
* If insurance company does not invest your money wisely, you could be forced to pay higher premiums in later years to counter act lost balances.
When looking for life insurance policy that best fits your family's needs, having a policy with flexible benefits allows you to change their premium payment amount at any time during the policy.
During your life, you might not expect road blocks to surface, but it's possible that they will.
Having the assurance that you can reduce your payments when needed, while also protecting your family's future in case something happens to you is an important factor to consider.
