The Universal life insurance policy is one of the most popular insurance policies of the current era. It offers a lifetime protection for the policy holder. It also lets a person change the premium or investments on the basis of his liking. Thus, you can say that it is a flexible and easy life protection policy for most people. Similarly, most insurance companies offer protection till the policyholder reaches the age 120 while paying only the premium till the age of 100. Also, there is not much of a change in the monthly premium and rates of the policy. Most people observe that they only pay a similar amount of money for the rest of their lives. Thus, if you are having this policy, you do not have to worry about the permanent life insurance quotes.
Since the Universal life policy has a wide variety of payment methods and benefits, it is also considered as the most consumer friendly policy. It offers several different investment opportunities and benefits for the people of all aspects of life. So, let’s talk about it in a bit detail:
As far as the payment is concerned, there are generally three types of payment methods:
• The first payment method is to pay in a lump sum. In this method, the policy holder pays a particular amount of money for the policy up front as a lump sum. Thus, it cuts the monthly payment for the policy of the policy holder.
• Another payment method is known as the flexible premium payment method. It is the most customizable and flexible payment method for the policy holder. So, if you cannot afford a consistent amount of money as your premium, you can customize the premium payments on the basis of your budget.
Thus, you can decide a particular amount of money that you are willing to pay in a given month according to your budget. Similarly, if you cannot pay your premium in a particular month, you can decrease the premium amount. Also, if you are willing to pay a higher amount than the decided amount, you can increase your payment as well.
• Last, but not the least, fixed premium payment is another method of payment of this policy. As the name suggests, it is a less flexible payment method and the policy holder pays a particular amount of premium decided before settling the deal. He cannot decrease or increase the premium for his flexibility. So, always be careful while paying by the fixed premium payment method. Therefore, monitoring your investment progress is absolutely crucial for the fixed payment method.
There are several features of the universal life policy that makes it different than most insurance policies currently available. Here are a few of the most important benefits that may help you:
• The first and biggest advantage of getting a universal life insurance policy is the flexibility in protecting. In this policy, you have the control to increase or decrease the protection you need. You can even increase or decrease the coverage of your insurance policy anytime you want. However, it needs a few changes in the settlements with the insurance company.
• Similarly, it offers a flexible premium option as well. So, with universal life insurance policy, you can even adjust your monthly premium on the basis of your affordability. If you cannot pay the decided premium in a particular month, you have the chance to decrease the premium without any problem. Also, if you want to make a higher payment than the decided premium, you can increase your premium. Therefore, it helps you in adjusting your budget as well.
• According to the recent Government tax law, the amount of benefit for universal policy is income tax-free as well. Thus, you will not have to pay any income tax on your money.
• Finally, you are guaranteed a particular amount of cash return, no matter how bad your investment goes for the policy.
All in all, universal life policy is the most suitable insurance policy for the masses. The control over premium payments has made a huge impact on common man’s life and now they can as well protect their family’s future by investing in life insurance policies.
If you are not sure about investing in life insurance, lifeinsurancegroup.com can help you take this decision. You can clear all your confusions and doubts over life insurance policy and get the real facts and figures. You can also read several articles related to insurance policies including the different types of policies and how to choose the most suitable policy for you and your family. You can also get free rates and quotes of the top insurance firm in your state with great ease.
I am an experienced life insurance advisor and have been working in this field for more than ten years. I have written this article for knowledge of the people seeking information about life insurance.