Just what is a universal life insurance policy? It is a type of permanent insurance that's based on a cash value. It's almost like making an investment. But is it right for you? Read more and find out!
Investing Basics
When you invest in something, you pay into it, usually at a fixed percentage. Why fixed? Because it is the easiest way to establish your potential out come over the course of time. However, every so often you may change it up, and put a little more, or a bit less. These changes generate a different out come at the end of your period.
This example above is a lot like how universal life insurance works; you pay a fixed amount with your premiums, like in any other policy. However, in a universal policy, if you decide to over pay, it will increase the cash value of the policy, thus increasing your eventual benefit payment.
Now, on the flip side of things. If you overlook a payment, or underpay, this is automatically taken off the over payments made. It's almost as if you created a buffer zone for your payments. Who knows, you might struggle one month, and it's a way to make ends meet, even if it is a little indirect.
How does it sound so far?
More About a Universal Insurance Policy
Basically, a universal policy is just another idea of investing, and creating a larger portfolio of investments. The biggest difference is that this one doesn't pay until you die.
This is assuredly not your run-of-the-mill insurance policy, to be sure, but it does have its virtues, where you can enhance your policy size, and give a better monetary payout in the end.
That is the chief benefit to having universal insurance, the fact that you can increase the eventual payout as much as you desire. It's a simple way of adding to your insurance without any fuss or bother.
Another thing to remember as well, is that the cash value also gains interest for the entire length of the insurance policy. This gives you an even bigger return when it is finally paid out.
Make the Assessment -- Is a Universal Insurance Policy Best for You?
So having a universal life insurance policy could be pretty good, but only if you were going to take advantage of the over payment clause.
If not, then possibly you should stay with a standard term or whole life policy instead, as either one may be more suited for your life style.
Don't get an insurance policy with special features that you won't use; it's a waste of money. Instead, use that money to acquire the life insurance that meets your needs.
Want Some FREE Information on the Life Insurance Options Open to You? - 33372
Investing Basics
When you invest in something, you pay into it, usually at a fixed percentage. Why fixed? Because it is the easiest way to establish your potential out come over the course of time. However, every so often you may change it up, and put a little more, or a bit less. These changes generate a different out come at the end of your period.
This example above is a lot like how universal life insurance works; you pay a fixed amount with your premiums, like in any other policy. However, in a universal policy, if you decide to over pay, it will increase the cash value of the policy, thus increasing your eventual benefit payment.
Now, on the flip side of things. If you overlook a payment, or underpay, this is automatically taken off the over payments made. It's almost as if you created a buffer zone for your payments. Who knows, you might struggle one month, and it's a way to make ends meet, even if it is a little indirect.
How does it sound so far?
More About a Universal Insurance Policy
Basically, a universal policy is just another idea of investing, and creating a larger portfolio of investments. The biggest difference is that this one doesn't pay until you die.
This is assuredly not your run-of-the-mill insurance policy, to be sure, but it does have its virtues, where you can enhance your policy size, and give a better monetary payout in the end.
That is the chief benefit to having universal insurance, the fact that you can increase the eventual payout as much as you desire. It's a simple way of adding to your insurance without any fuss or bother.
Another thing to remember as well, is that the cash value also gains interest for the entire length of the insurance policy. This gives you an even bigger return when it is finally paid out.
Make the Assessment -- Is a Universal Insurance Policy Best for You?
So having a universal life insurance policy could be pretty good, but only if you were going to take advantage of the over payment clause.
If not, then possibly you should stay with a standard term or whole life policy instead, as either one may be more suited for your life style.
Don't get an insurance policy with special features that you won't use; it's a waste of money. Instead, use that money to acquire the life insurance that meets your needs.
Want Some FREE Information on the Life Insurance Options Open to You? - 33372
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I know it's a lot to take in, but you don't need to be confused about insurance -- you need answers! And here is some more totally FREE life insurance information to help you get it!
