Universal Life
Universal life is a cross between term insurance and whole life with an investment fund that has a minimum earnings rate.
These policies usually have lower premiums than whole life.
The most significant feature is flexibility.
The premium is flexible, it can be adjusted from year to year. A policy owner can even skip payments as long as there is sufficient cash value to cover all of the costs. The amount of insurance, or face value, can be changed as circumstances change throughout life.
Increases in the death benefit may require proof of insurability.
Cash build–up value is linked to the performance of the funds in which the premiums are invested. The insurer chooses the investments. Contracts are separated into protection, expense, and cash value elements providing clear accounting of how the premiums are allocated.
The contracts can be used as business insurance and individual coverage. They provide protection from
creditors’ claims, and offer a loan provision.
The flexibility in the premium payments, death benefits and semi-compulsory savings with professional money management elements can make universal life insurance a good choice.
Contracts are separated into protection, expense, and cash value elements. Cash build–up value not necessarily fixed or guaranteed, but linked to the performance of the funds in which the premiums are invested.
These policies usually have lower premiums than whole life.
The most significant feature is flexibility.
The premium is flexible, it can be adjusted from year to year. A policy owner can even skip payments as long as there is sufficient cash value to cover all of the costs. The amount of insurance, or face value, can be changed as circumstances change throughout life.
Increases in the death benefit may require proof of insurability.
Cash build–up value is linked to the performance of the funds in which the premiums are invested. The insurer chooses the investments. Contracts are separated into protection, expense, and cash value elements providing clear accounting of how the premiums are allocated.
The contracts can be used as business insurance and individual coverage. They provide protection from
creditors’ claims, and offer a loan provision.
The flexibility in the premium payments, death benefits and semi-compulsory savings with professional money management elements can make universal life insurance a good choice.
Contracts are separated into protection, expense, and cash value elements. Cash build–up value not necessarily fixed or guaranteed, but linked to the performance of the funds in which the premiums are invested.
