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Instant Universal Life Insurance Quotes:
On the rectangular box to the right, when it asks for "Type of Insurance" scroll to the bottom, choose the option 6th from the bottom that says "To age 121, (No lapse U/L)" This means it is a universal life insurance policy that is guaranteed till age 121. Universal Life Insurance Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums. Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly. Advantages of Universal Life Insurance: Universal life insurance policies allow policy holders to adjust the amount they pay into the policy to meet their needs. Universal life insurance is like term insurance in this way, policy holders can vary the amount of coverage and the amount of their premiums over time Why Buy Universal Life Insurance? It does the same thing as whole life at half the cost. It will not guarantee cash value, but it will guarantee fixed premiums till age 121. You get the credited interest based on the movement in the given index segment and crediting method. The company is purchasing options. If the market goes up they exercise the options. If the market goes down the options are worthless and they let them expire. The cost of the options and the carriers options budget dictate the cap and par on the strategy. The client never loses money because their dollars are invested in the companies underlying investments mainly bonds and the company uses the returns to purchase the options. |
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