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.
Universal Life Insurance Quotes Online
Reader’s Question:
Is term life insurance coverage a good alternative to universal life insurance? A friend here in Montgomery is suggesting it.
Grace
Montgomery, AL
Hi Grace! It’s good to hear that you’re thinking of purchasing life insurance coverage. Someone once told me that the uncertainties are the only things we can expect for certain; hence, we need to always be prepared for any eventuality.
Term life insurance and universal life insurance are both life insurance policies but they differ in many ways. Firstly, term life insurance offers only temporary coverage. You specify the period you want it to be in effect and the insurance automatically expires after that period, whether or not a payout was necessary during that time. Quite differently for universal life insurance, coverage stays in effect unless it pays out or you fail to pay your premiums. Some insurers in Alabama even return dividends or additional income from your accumulated premiums. You can also usually access the cash value of your investment at any time after a certain grace period.
Now, whether or not a term life insurance is the better alternative to universal life insurance depends on individual needs. I suggest that you look at available policies by entering your zip code in the forms on this web site. You can then request for free quotes which you can compare. It will then be easier for you, Grace, to decide what type of insurance suits you best.
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