Universal Life Insurance Rates
Reader’s Question:
What are the benefits that I can get from universal life insurance policy aside from the flexibility in the amount applied to life insurance policy?
Janice
Fort Collins, CO
A universal life insurance policy is a term life insurance policy that has element of savings. If you are a policy holder of a universal life insurance policy, you can adjust the amount of premium applied to the life insurance protection and savings anytime. Reducing the amount can be easy but if you want to increase your life insurance, the life insurance company may require you a proof of insurability.
Owning a universal life insurance policy has several advantages. With this type of life insurance policy, the death benefits are level or do not increase. The proceeds are paid upon the death of the policyholder and are free from income tax. Universal life insurance allows the policy owner to increase or decrease the amount of saving. Increasing the amount of life insurance requires the policyholder to present an evidence of insurability. Because of the saving element, this life insurance policy accumulates cash values tax deferred. The policy owner can access this cash in case of an emergency. Lastly, an increase in cash value increases the face amount or death benefit accordingly.
There are also disadvantages when you purchase a universal life insurance policy. The premium of this type of life insurance is a little high but the extra premium is worth it if you want to save money. In the event of a decline in interest rate, the amount of premium may be required to increase. Otherwise, the policy may lapse. The policy holder can actually reduce the amount of the amount of his/her life insurance as an alternative to this situation.
An Essential Guide To Universal Life Insurance
Readers Question:
What are the benefits of a Universal Life insurance policy? Will I have to spend much on such a plan?
Shirley
Des Moines, IA
Good question. Let’s define Universal Life insurance first: this is a special kind of Whole life or Permanent life insurance coverage that allows a policyholder more flexibility when it comes to adjusting how much you pay for premiums, and even your death benefits. It has the savings or cash value feature of a whole life insurance policy as well. The benefits of such a life insurance plan include:
1. More options when it comes to pay-outs after the maturity of the policy – you may choose to have either the cash value as the death benefit, making premiums lower, or the face value amount of the policy.
2. A Guaranteed minimum interest rate stipulated on the policy – your cash value is sure to grow at a set rate, regardless of the insurer’s financial performance.
3. Tax-deferred accumulation of wealth – There are only certain instances where state and federal taxes can apply.
4. Your money is placed in a diversified range of investments – reducing the risk of loss in case a particular investment goes south.
Similar to any type of permanent life insurance policy, when you buy universal life insurance coverage your initial premiums can be very expensive, this is because you’re building up your cash value, and like most permanent life insurance plans, premiums become cheaper in the long run.
However, it is still highly recommended that you shop around for the most competitive policies before you even decide to buy life insurance coverage. The Internet is a great place to start; with many life insurance portals and websites giving access to the latest rates and offers, making it possible to effectively identify the providers that is most affordable to you.
Do maintain a healthy lifestyle and seriously consider quitting smoking. Smoking alone and push rate up by as much as three to four times above the average. Hazardous activities or hobbies also tend to make life cover more costly; so if you intend to keep premiums affordable, then reduce your risk of dying sooner.
How to Get Cheaper Universal Life Insurance
Reader’s Question:
I currently own a 2-year old life insurance policy but I’m not satisfied with the premiums I’m paying. Can I do something to get cheaper life insurance rates?
Baron
Lafayette, IN
Yes, the good news is that there are still some effective ways to get savings on your life insurance coverage. Here are a few tips that could prove quite useful to you:
1. Make Sure You Have the Right Policy
Paying for the wrong kind of policy is an utter waste of money, but you’ll be surprised at how often this happens. If you just need coverage for a certain period of time, such as while raising a family or paying your mortgage, then go with a term life insurance plan. Want to accumulate substantial amount of money and have permanent coverage? Then a whole life insurance plan is recommended.
2. Take Advantage of “Price Breaks”
With most life insurers today, choosing a higher coverage amount (a.k.a. death benefit or face value) can actually give you lower rates. So if choosing between a $350,000 policy and a $450,000, going with the latter can actually save you money.
3. Live a Healthier Lifestyle
Taking care of your health and quitting smoking can do real wonders in keeping your rates affordable. There is no better time to start this than now.
4. Go with Annual Payment Plans
If your life insurer offers this, consider paying your coverage a year in advance. This entitles you to get discounts or lowered premiums.
5. Look for Discounts
Discounts abound, and you want to make sure to ask your insurer about those you might be eligible for. This is an almost effortless to get savings out of your life insurance bills.
6. It Wouldn’t Hurt to Shop Around
There are hundreds of life insurance companies out there and it would be a good idea to run a free quote check from insurance comparison portals (like this website) to know what is being offered. There are times when the only way to get cheaper life insurance is to switch carriers.
Cheap Universal Life Insurance Rates
Reader’s Question:
I just got a new job and my mom’s been bugging me to get universal life insurance. Can you tell me, what is the difference between universal life insurance and whole life insurance, anyway? Is it the same as variable life insurance here in Bloomington?
Vanessa
Bloomington, IN
You have a very practical mom, Vanessa. Nevertheless, I think it’s good that you’re exploring all your options and not just looking at universal life insurance per se.
Now, to answer your questions. Whole life insurance and universal life insurance both provide permanent insurance coverage; however, whole life insurance involves a level premium which guarantees you a certain death benefit amount as well as cash values while universal life insurance policies involve more flexible premiums as well as potential for higher benefits. There are three basic types of universal life insurance – the interest-sensitive traditional fixed universal life insurance, the equity-indexed life insurance and the fully flexible variable universal life insurance.
Most universal life insurance companies in Indiana would probably be able to offer you both types of life insurance as well as any of the three types of universal life insurance. You must be careful, though, because different insurers would have different policy costs, terms and conditions. It is advisable that you shop around for a bit before you commit or sign a contract. I suggest that you request for free universal life insurance quotes online from insurers in Indiana. To do this, type in your zip code in the forms on this page. Compare and contrast so that you can get the best deal. I hope I was able to help clear up things a bit for you, Vanessa.
Life Insurance Quotes Online
Reader’s Question:
I have heard of the new life insurance product called the universal life insurance. What are the special features of universal life? Would it be available in Nebraska ?
Judith
Omaha, NE
Certainly, Judith, your insurer in Omaha will carry the universal life as part of the life insurance product line. Thank you for the question as it will give me an opportunity to explain the special features of the universal life insurance.
The closest life insurance to universal is whole life insurance. Both offer permanent protection, as well as tax-free cash values and competitive interest rates. Their biggest contrast is the payment of premium and in the calculation of death benefit. Whole life insurance is the more conventional kind of insurance where the owner pays a fixed monthly rate for a fixed death benefit package. Universal life is at the opposite end of the pole, in this case. Universal life lets the owner choose the amount and frequency of payments, just as long as the annual premium is completed. Consequently, coverage and death benefits can vary depending on your needs and cash value. You can also expand your coverage by paying a higher premium. Also, universal life can have several rider policies, dependent on your wishes. Ask your insurance company in Nebraska on the available riders that can be included in your universal life policy.
You can also try several combination’s or packages and get free quotes for them by entering your zip code on the space you find on this page. Universal life insurance will appeal to more daring investors, I guess. It has high risk components but with equally high yielding investments. Also, if you have an irregular income, universal life will be the ideal life insurance for you.
Universal Life Insurance
Reader’s Question:
Since I am planning to buy my own life insurance, I’d like to ask what are the benefits of getting a universal life insurance policy?
Lovely
Hillsboro, OR
A universal life policy can be atoned to a fusion between a term life and a tax-deferred interest accruing savings account.
In buying one, a benefit that you will get is that you not only accumulate tax deferred savings, but you also may not have to pay premiums throughout the entire duration of the policy. If the money required to pay for the death benefit and other associated costs accrues in the savings fraction of the policy, premiums eventually may not be needed to keep the policy in effect.
Most people who would benefit from universal life insurance policy are those who need life insurance into their 70’s as it is an investment medium as well as a life insurance policy. This would give enough time for your savings part to accumulate into an investment. Most individuals will not want their life insurance to come too late in their lives. In that case, it might be more favorable to acquire a term life insurance policy and prepare a suitable retirement investment savings account such as an annuity.
If you feel like universal life is the right insurance for you, you might want to consider a few points. First, 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 and second, make sure you have a well-informed insurance agent in your area who can help you review your other alternatives such as whole life and term insurance.
Free Universal Life Insurance Rate Quotes
Reader’s Question:
How can I use life insurance as future investment in Las Vegas? I really though life insurance is just for beneficiaries who are left if I die.
Marco
Las Vegas, NV
It’s true that insurance are provided to your beneficiaries when you die, but it can do more if you buy permanent life insurance. There is one type of life insurance that only the beneficiaries can benefit, which is the term life insurance. Term life insurance is purely life coverage for most life insurers in Nevada. Your life insurance should be enforced within a specific term so that when you die, your beneficiaries will receive something. But without death on the term of your life insurance, you will most probably gain nothing.
Another type of life insurance which has an investment side is known as permanent life insurance. This is definitely available in Las Vegas because this is common. It can accumulate cash every time you pay your basic premiums. Even if you decide to eventually stop paying premium at certain time, the cash will continue to accumulate. The premiums will differ in terms of the cash value that it could produce plus the death benefit it offers. Permanent life insurance will have three variations: universal life insurance, whole life insurance, and variable life insurance. Each will vary on how the cash accumulates normally due to the interest rate variable.
Permanent whole life insurance will be very useful in your future because of its cash value. You can withdraw it and use it for whatever purposes. Some would buy whole life insurance for their retirement. Others would buy the same type as a valuable emergency fund. Some would use it to meet monthly mortgages or any other long term financial obligations. Life insurance is really investment for your future. All you need to do is to choose the appropriate type in Las Vegas Nevada NV and you will be all set.
Universal Life Insurance Florida
Reader’s Question:
I have encountered a person mentioning about investing in variable life insurance. Then I have another friend who received a proposal for variable universal insurance. Are the two the same in Florida concerning life insurance?
Cheska
Gainsville, FL
I’m sure that you have also been approached by life insurance agents in Florida because your friends have been contacted too. Anyway, to answer your question, both variable life insurance and variable universal life insurance are permanent life insurance that has the life coverage and the cash value. Meaning, you are not only paying for life insurance, you are also investing for cash which accumulates over a period of time. These are the main similarities of the two life insurance products.
The variable life insurance has cash value which is invested in stocks, bonds and mutual fund for money market. This seems attractive in a sense that these investments grow quickly and in large amount. I know you’ll agree that stocks and bonds are good investment when it is performing well. However, there’s a risk that these investment may not work well thus posing risk to your money. Once the investment is a failure, you would decrease the face amount of your life insurance together with the failed investment. However, there are policies of variable life insurance that guarantees death benefit within minimum level.
Variable universal life insurance has the same characteristics as the variable life insurance. What makes it different is that it has the features of the universal life insurance in premium payment. Just like universal life insurance, the variable universal life insurance is flexible in premium payment because it is dependent on the prevailing market interest rate. Such flexibility in premium is the only difference with the variable life insurance.
Life Insurance Dallas Texas, TX
Reader’s Question:
Is getting life insurance products worth the money? Why would I be needing to buy life insurance in Dallas, TX?
Drake
Dallas, TX
Hi Drake
Life insurance is important most especially if you have dependents who are depending on your income to survive in Dallas. Imagine what happens if you die and your dependents are left without sustenance. Besides its not just about their sustenance, its also about the cost of your funeral and burial. You can’t just leave your dependents to take care of those things without enough money. And how about the credits that you have, won’t the credit company go after your loved ones whom you left? This is one important consideration why you buy life insurance.
There are two options for you: term life insurance and permanent life insurance. The former type is purely life coverage. When you die, your beneficiaries will receive the death benefit within the term that the life insurance is enforced. If you don’t die within the term, you gain nothing. But at least, this type of life insurance is cheaper of the two types. And since this is popular and common, there are life insurance companies in Dallas who can give you still the lowest premium. All you have to do is get different quotes from life insurance providers in You should choose the lowest premium with your preferred face value and benefits.
If you don’t want pure life coverage, you can choose the second type which is the permanent life insurance. Variant of this type is universal life insurance, whole life insurance and variable life insurance. This type of life insurance has a cash value or others call cash savings. Meaning when you pay the premium, you are not only paying for life insurance but accumulating cash as well. In the future, you can withdraw or borrow the cash value for whatever reasons. In other words, this is life insurance plus investment.
Permanent Life Insurance Florida
Reader’s Question:
Hi, I have bought permanent life insurance here in Cape Coral for about ten years now. But at this point I can’t pay for the premium anymore because of an unexpected event in our family. What should I do with my insurance here in Cape Coral?
Claire
Cape Coral FL
Hi there Claire.
I appreciate your honesty and surely you will be rewarded with solutions to your crisis. With permanent life insurance, you will be faced with three options if you cannot pay for the premium anymore. First, you can opt to cash out the cash value of your policy. This way, you will be able to collect the accumulated cash. Once you do this, you will not longer be entitled for the life insurance coverage but at least you have taken out the cash savings. It is possible for you to pay taxes if the amount is over what you have paid in premiums.
Your second option is reduced paid up. This means that you can choose to stop paying while you let the cash value pay for the life insurance. Once this happens though, the death benefit may be reduced and there would be no more cash value.
You can opt to have it lapsed. However, you can save it in due time if there is provision in the policy that it can be reinstated after a period, usually after five years. Once you reinstate it at times when you are already ready to keep the life insurance “alive” again, you need to pass through another medical examination. However, the premiums are usually lower compared when you buy it as new life insurance.
You can talk to your life insurance agent to guide you with the best choice taking into account all the possibilities in your current and future condition.
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