DEFINE UNIVERSAL LIFE INSURANCE
What is A Universal Life Insurance Policy?
How Much Does Universal Life Insurance Cost? - $200 per year - prices will vary!
Do you know anything about universal life insurance? If so, you are in good position to buy this type of policy. If not, you need to learn more before you decide for or against this. The basic definition of universal life insurance is quite simple to understand. This is a type of permanent life insurance product that is based on a cash value. While this is basic, there are some other details that you need to learn about.
For many, the reason to buy universal life insurance is the tax advantages that it offers. When compared to other types of insurance it is easy to see that universal offers many more benefits as from a tax standpoint. And for most people this is a very good thing. In the beginning of your policy the premium will be much larger than the cost of insurance charges. The difference between the premium and cost of charges is known as the cash value – this will continue to grow tax deferred. Now can you see why universal life insurance is a good idea when it comes to tax benefits?
There are many different types of universal life insurance. They include single premium, fixed premium, and flexible premium. If you are interested in buying a policy you need to choose which one of these three is best for you. Single premium is paid for in one initial payment; fixed premium is paid for over a period of time and in a number of payments; and flexible premium allows the buyer to decide how much they want to pay. Your financial situation will have a lot to do with the type of universal life insurance that you purchase. For instance, if you have a lot of cash on hand you can purchase a single premium policy and forget about paying over the long haul. On the other side, if money gets tight you can always opt for a flexible policy.
Now that you know more about universal life insurance you can decide if this type of policy is right for you. As you can see, there are a lot of options and all of them offer many benefits.