Idaho Finance

Feb 10 2018

Universal Life Insurance Quote Online Rate Quotes, life insurance instant online quote.#Life #insurance #instant #online


Universal Life Insurance

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Provides great life long coverage with more flexibility options for premium payment.

Costs can be significantly more than a term life insurance policy and guaranteed interest rates on the cash value are usually very low.

Works Best For

Best suited for individuals who want protection that lasts their entire life with more flexibility in death benefit and premium payment.

Universal Life Insurance

What Is Universal Life Insurance?

Uses For Universal Life insurance

How The Death Benefit Works

How The Cash Value Works Inside Universal Life

Comparing UL policies

Term vs. Universal

Whole Life vs. Universal

Different Structures Of Universal Life

Types of universal life

Pros of Universal Life

Cons of Universal Life

Real Life Questions

What Is Universal Life Insurance?

Life insurance instant online quoteUniversal life insurance is a permanent life insurance policy that is similar to whole life in that it mixes a savings vehicle along with lifelong (hence “permanent”) coverage. If the premiums are paid as required, the policy will not expire and death benefits will be paid out to the beneficiary. Typically universal life provides more flexibility in premiums and a “cash value” that mimics a whole life policy on the surface. Universal life policies were created to provide more flexibility to the customer’s need that other permanent policies do not provide for. The savings, premiums, and death benefit can be changed based on the overall need of the customer as the policyholder’s situation changes.

The cash value inside an universal life insurance policy can be tied to a money market account, a major stock index, or be invested into equity funds and bond funds depending on the type of universal life product you purchase. Once a policy is purchased, the company creates a minimum interest crediting rate per the amount stated in the contract. If the portfolio earns more than expected, the additional amount is credited to your account up to the cap rate. It is for this reason why universal life insurance policies can accumulate more than whole life policies

One major advantage to the cash account inside these types of policies is that the cash value can be used to pay Life insurance instant online quotepremiums on the policy after a certain point if there is enough fund in the account to pay for the continual cost of insurance unlike whole life which automatically takes out loans against the cash value in the event of a non-payment of premium. Premiums inside a universal life policy are split between two different areas: the savings element and the cost of insurance. In order for the coverage to remain in force, the cost of insurance must be paid through premium payment, or (if there is enough fund built up inside the cash account) a reduction of the cash value. As long as the cost of insurance is paid, the contracted coverage is guaranteed to stay in effect.

Uses For Universal Life Insurance

Life insurance instant online quoteFor the most part, the use of universal life insurance parallels with other forms of life insurance as a financial protection and income replacement vehicle in the event of death. In the insurance world you will see universal life insurance being used more in advanced estate planning after other tax-free/tax deferred options (like 401ks, IRAs, etc…) have been maxed out and customers are seeking ways to maximize their money in a tax deferred way to help minimize current tax obligations that can’t be gained using other forms of investment vehicles.

How The Death Benefit Works

When it comes to the death benefit, basically you have two options: Level or Increasing.

With the level death benefit, the amount the policy pays out stays level throughout the life of the policy and pays out the death benefit or the cash value, whichever is greater. With an increasing death benefit, both the cash value and death benefit increase over time and are both paid out as part of the death benefit.

Which is better? That all depends on your end goals and best discussed with a licensed insurance agent like one of our True Blue personal shoppers.


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