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.

Universal Life Insurance Company

Reader’s Question:

If I die, what can my family expect to receive from my universal life insurance policy when they file a claim here in Westminster Colorado CO?

Paul

Westminster Colorado CO

Your family is lucky to have someone like you who cares a lot about them, Liam. Your family should be informed that universal life insurance claims in Colorado and most places in the US are usually handled by the home office of the life insurance company. They will need to inform the company and fill out a request form. Leave them a copy of your insurance policy so that they don’t have a hard time filing the claim.

Normally, insurers are required to pay beneficiaries at least eight percent interest starting from the date of death so it is in their best interest to settle their claim immediately. Your beneficiaries will receive the amount specified in your universal life insurance policy, though the insurer may sometimes adjust this amount depending on specific provisions in your life insurance coverage, like if you have any outstanding loans against the cash value of your policy or if you have accrued dividends which can be added to the amount of the benefit.

Your family also has the option to either receive the bulk amount immediately, leave the proceeds with the company and let it earn interest until they are ready to claim it or convert the proceeds into monthly income, sort of like pension for them in your absence.

Why don’t you take a look at the different options available from insurance companies. Just type in your zip code to receive free universal life insurance policy quotes. This will give you a better idea of what kinds of benefits your family can receive from universal life insurance policy before you finally decide to purchase it.

Smoker Life Insurance

Reader’s Question:

If I don’t tell my insurer in Connecticut that I am smoking, would the insurance company in Hartford, know about it? Will anything happen to me if I lie about my smoking?

Erwin

Hartford, CT

Smokers are considered an insurance risk because they pose high risks for health problems compared with non-smokers. Smoking cause serious negative effects on health, and eventually life insurance. The insurance companies in your area, will of course know eventually.

Concealing the fact that you are smoking can be considered as a fraudulent act, therefore your insurance company will not know immediately in your application for life insurance. In the event that you prematurely die and your insurance company found out that the cause of it is smoking, then your insurance company holds the right to deny claims of your insurance!

It is better to be honest on your part so as not to scrutinize your insurance and endanger the benefits that it will bring to your beneficiaries.

Your life insurance company in Connecticut may not have known it that you’re lying upon your application of insurance, but provided they know eventually, then you’re in a costly mess both in the law, as it is a fraudulent act and your insurance in Hartford.