Universal Life Insurance in Kentucky
Reader’s Question:
I am a permanent life guy! My agent in Lexington, Kentucky was telling me about a new product called universal life insurance. If you can please fill me in fro things I should watch out with insurance in KY?
Jon
Lexington, KY
Okay Jon,
Glad to hear you are on board with permanent life in Kentucky. Universal life insurance is not a new coverage. Let’s say it is a young coverage. Universal life plans were developed to accommodate individuals who, like yourself, wanted the advantages of permanent life insurance but who wanted a little more flexibility with the premiums requirements.
Universal life insurance does offer a guaranteed death benefit. That should be at the core of your decision making if you need to purchase very soon in Lexington. But, sometimes it is nice to be able to work with the carrier to establish your own premium payment amount and how those payments are made. Many universal life insurance packages include dual death benefit possibilities. See what we mean by flexibility of insurance policy in KY?
With universal life insurance, the owner can also decide the coverage period. It can be for one’s entire life or for a lesser time frame. Just another flexible option for you to consider. Usually the cash value accrual in universal life insurance is not guaranteed, but the option is there for you. Sounds like your agent in Lexington, Kentucky knows your investment history. Get more info from him and please consider universal life insurance.
Universal Life Insurance in Tennessee
Reader’s Question:
I understand that universal life insurance would be relatively an expensive type of insurance in Memphis, TN. Would there exist a cheap universal life insurance considering that it has a flexible premium? With flexible payment, it means the premium fluctuates so it can be considered neither cheap nor expensive.
Tanya
Memphis, TN
Good question, Tanya
It’s an interesting question because you argue that having a flexible rate, the price cannot be determined if it is high or low compared to others type of life insurance. That seemed to be a wise observation.
To answer your question, universal life insurance is actually more expensive than the term life insurance. But when you compare it to other types of permanent life insurance that’s available in Memphis TN, we cannot conclude that it is cheaper than others just because it is simply flexible. Although the premium is flexible, the flexibility is only based on the foregoing interest rate in the investment side.
But universal life insurance is not just investment, it also has insurance. When you are unhealthy, for instance, the price of the insurance is higher. The combination of high life insurance and investment makes up an expensive premium. Meaning, there is still a required premium to pay to keep the universal life insurance in force. It is not purely flexible to the sense of your capability to pay. Another advantage of universal life insurance is you can borrow the accumulated amount to pay the premiums at the right time and amount. This way it is not hard for you to pay.
If you are simply concerned of the flexibility side, it is not about your capability to pay per se. It is about the interest rate to accumulate the tax-deferred investment side of the universal life insurance. Other than this, you can still find options to pay cheaper premiums for universal life insurance. In conclusion, universal life insurance is not cheap when compared to other life insurance available in Memphis Tennessee because this has investment side. It is flexible only on the investment side but you are still obliged to pay the life insurance side which actually has fixed base premium to pay.
Universal Life Insurance Ohio
Reader’s Question:
I have a few friends in Cleveland Ohio trying to win me into buying my own life insurance. They say universal life insurance is generally beneficial. Who can actually benefit from universal life insurance?
Charlie
Cleveland, OH
Hello Charlie
Before I answer your question, let me run you through the basics of universal life insurance.
A universal life insurance is a permanent insurance where you pay premiums at a flexible rate for cash accumulation. In other words, a universal life insurance is not purely life insurance. It is also an investment at the same time.
In comparison with term life which pays for the death benefit alone, universal life insurance is actually a savings. In essence, both the insured and the beneficiary benefit from universal life insurance. Unlike term life where only the beneficiaries can get the life insurance amount upon the death of the insured, the insured will be able to benefit the amount invested with universal life insurance.
In fact, the accumulated cash can be used to pay the premiums to keep the insurance in force. And if the cash have accumulated enough, it ca be withdrawn for other use and returned to keep the investment and insurance enforced and increase cash value. What is even more beneficial about the universal life insurance is that payment of its premiums is flexible so the policyholder pays based on current interest rate.
A universal life insurance is beneficial also to those who want to accumulate cash up to the person’s 70th year. When the person started investing at age 30, he could have accumulated enough cash to supplement his retirement.
I think it is best for you to talk to a local insurer in Cleveland Ohio about your options for insurance before you will get convinced by your friends to buy universal life insurance. Once you get the agent’s opinion, you can proceed to comparing their quote to the ones you will get free online. I encourage you to get free quotes now while you are online which can also be done in this page.
Universal Life Insurance Hillsboro OR
Reader’s Question:
I am planning to buy my own life insurance here in Hillsboro, Oregon. What would be the benefits of getting a universal life insurance policy?
Lou
Hillsboro, OR
How are you today, Lou?
In short, a universal life policy is basically like merging a term life insurance policy with a tax-deferred interest accruing savings account.
One benefit of buying a universal life insurance policy is that you not only accumulate tax deferred savings, you also may not have to pay premiums throughout the entire policy’s duration. If money required to pay for the death benefit and other associated costs accrues in the savings fraction of the policy, eventually premiums may not be necessary to keep the policy in effect.
Since a universal life policy is an investment medium as well as a life insurance policy, predominantly those people would benefit from it who need life insurance into their 70’s. This would give enough time for the savings portion to collect into an investment. Most individuals will not require life insurance that late in their lives. In that case, it might be more favourable to acquire a term life insurance policy and prepare a suitable retirement investment savings account such as an annuity or a 401K.
If a universal life insurance policy seems right for you, there are a few points you may want to remember. First of all, ensure that you plan to have the policy for a long period of time given that you will need to have the policy in effect for at least fifteen years to qualify for any return from the policy. Second, make sure you have a well-informed insurance agent in Hillsboro, Oregon who can help you review your other alternatives such as whole life and term insurance.
Tags: life insurance, universal life insurance
Universal Life Insurance Quote
Reader’s Question:
I am thinking of taking out a life insurance policy for myself. I wanted to know if there are any benefits of having a universal life insurance vs. a whole life insurance.
Thank you.
Mary
Lawton, OK
Well, Mary, if you are young and planning for the future but are reluctant to spend money on life insurance because you believe you have nothing to show for it, go for a universal life insurance.
A universal life policy is definitely recommendable if you want permanent, lifetime coverage. The premiums do not increase if you renew your policy or reapply for a term insurance. A universal life insurance can help pay off debts and your mortgage. A term life insurance policy can also do that but the flexible premium payments and adjustable death benefits are not characteristics of a term life insurance policy.
A term life insurance policy does, however, provide death protection for a specific length of time and also gives the largest immediate death benefit for your money. Some policies are convertible to whole or universal even if you are not in good health.
Universal Life insurance does not offer as many guarantees as whole life does but it can be more cost-effective. All in all, it depends on your needs and your financial situation. It is not an easy decision to make as it affects your entire family not just for the present but for many years to come. Choose wisely!
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