Recommended Universal Life Insurance Policies
Reader’s Question:
I’ve heard a lot about how much coverage one should have under a life insurance policy (my neighbors here in Minnesota just loves to talk about these things!), How much universal life insurance, in essence, would you recommend?
Lee
Minneapolis, MN
This is a very good question. Everyone who wishes to have life insurance coverage should know how to recognize how much life insurance would be adequate for their needs. Many experts say you have to get a coverage amount that is ten, twenty, thirty times your annual income as a good rule of thumb. While this may be a good estimates, you can never really be sure if these are enough or in the other hand, this may be too much and you might end up wasting too much money on life insurance that could have been put to good use elsewhere. Where do you even begin?
It would be highly advisable that you get a good understanding of your family, your household, your kids (anyone who relies on you there in Minnesota, financially) needs. On an annual basis, try to determine how much you spend on bills, groceries, mortgage, loans, debts and any other financial obligations that you may have. You will now have a way of more precisely identifying how much money your beneficiaries would need in order to survive decently in the event that you pass away.
Let’s say you do pass away, how much money or income do you want to leave your beneficiaries? For how long? Also, who will take care of burial costs? Let these questions guide you in determining the right kind of life insurance policy for you with the right amount of coverage.
About Universal Life Insurance
Reader’s Question:
Why should I go with a Universal Life Insurance Plan? Are they better than the whole life policy that I currently have here in North Carolina?
Enrico
Charlotte, NC
Universal Life Insurance Plans are a type of whole life or permanent life insurance coverage that is geared more towards individuals who are investment-oriented and would like to have more control of how your money is invested. Universal Life Insurance policies also reflect the kind of risk tolerance that you would have when investing.
So a Universal Insurance plan can also be seen as a life insurance policy with a sort of mutual fund attached to it. The goal is to grow your money or the Cash-Value amount of your policy in the long-term (and while the policy is still in force). Admittedly, this kind of policy is not for everyone and it would be a good idea to have some basic knowledge about how investment portfolios work.
The only real difference between a traditional whole life plan and a universal life insurance plan is that you are given control over how your money grows. If you are somewhat of a risk-taker, even a conservative one and recognize that you can make money (a lot of it) by investing and also wants the capability of choosing what kind of investment mechanisms your money should be going into, then a Universal Life Insurance Plan might be for you.
This kind of policy has a lot of promise, but like anything there will always be some amount of risk involved so consult a life insurance agent or broker there in North Carolina, and ask as much questions as you feel necessary to understand this kind of coverage.
Getting Universal Life Insurance Quotes
Reader’s Question:
This is the first time that I would search for my life insurance so I need some expert’s advice. How do I find the best universal life insurance companies here in Arizona to offer me good quotes that I can choose from?
Antoine
Scottsdale, AZ
There are a lot of helpful resources that you can find online aside from the Websites of life insurance companies that provide Arizona life insurance quote on several policies. If you take advantage of the availability of the Internet, you can truly make your loved ones more financially protected should you depart this life. A lot of new life insurance providers come to play which makes the business more competitive, thus more options for you to get the most suitable Arizona life insurance quote for you.
A simple way to find the best life insurance companies is to review the various kinds of insurance you carry such as auto and home and see if your insurer or insurers also offer life insurance policies. It would seem sensible to obtain term life insurance quote from them first for you to be familiar with their terms and conditions aside from the kind of customer service they offer so that you can get the best value of your money for your life insurance plan.
Since this is your first time to search for your Arizona life insurance quote, it is better that you fire up your search engine to get the most affordable life insurance quotes. However, make certain that you obtain life insurance quotes from several insurers. These life insurance quotes that you see online are not only free but you can get accurate information quickly.
Cheap Smoker Universal Life Insurance
Reader’s Question:
Exams are a pain so I tend to smoke to keep bring down the tension afterwards. It’s the only time I smoke, I swear! Will this boost up the premiums if I get a universal life insurance policy in Stamford?
Zachary
Stamford, CT
Oh, Zachary, lots of people say the same thing about their smoking habits. A lot of my friends say that they smoke only when they drink beer or only after eating or only when they’re incredibly stressed out at work – but the one stick a day quickly develops into a one pack a day habit. It is a habit that various research have closely linked to lung diseases, particularly cancer; hence, it is a widely recognized health risk to be a smoker.
Nevertheless, I guess most life insurance companies in Connecticut do recognize the need to provide life insurance coverage to smokers as well as non-smokers. However, considering the proven health risks, it does tend to boost up premiums compared to non-smoker levels, particularly for whole life insurance policies. Since you’re considering universal life insurance, however, the variability of both premiums and returns from this type of life insurance may help shield you from the usually high premiums. You might want to look into equity-indexed universal life insurance and compare the terms and conditions with traditional fixed universal life insurance.
An efficient way to do this is to request for free online quotes from this site (just enter your zip code). You can then compare smoker life insurance coverage available to determine which one offers the best value for you. Just remember to be frank about you smoking habits so you get accurate quotes. Best of luck, Zachary.
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.
Buy Universal Life Insurance
Reader’s Question:
What are equity-indexed universal life insurance policies? My friend from California mentioned it but I’m not sure if it’s being offered in San Antonio Texas – is it?
Sarah
San Antonio, TX
Hi there Sarah! Your friend seems to know quite a bit more than the usual about life insurance policies. I’m not exactly sure where I should start. Let me begin with the basics, though.
You see, universal life insurance is a form of permanent life insurance coverage. Permanent means that your policy will remain in effect until you either fail to pay your premiums or your life insurance policy pays out. It’s a flexible fund in that you can combine a variety of investment portfolios from the standard low-risk government bonds to the more high-risk funds traded in the stock market. Now, equity-indexed universal life insurance, or EIUL, refers to a variation of the fixed universal life insurance policy which was intended to provide a more secure investment option to the usually volatile stock market mix by crediting interest to the policy’s cash values based on the rise or fall of a chosen stock market index.
I’m not entirely sure whether companies in Texas specifically offer this type of universal life insurance; hence, I suggest that you enter your zip code to the forms on this site to find out. You can also get free quotes and access to information by clicking on the links.
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.
What is Universal Life Insurance
Reader’s Question:
I just want to ask what is a universal life insurance?
Arthur
Honolulu, HI
I can give you some overview answers, Arthur.
There are many different types of universal life insurance plans available in Hawaii. You see, most people are familiar with term life insurance that pays the policy amount of your death. Term insurance policies often have a premium guaranteed not to increase for a fixed number of years. Whole life policies are designed as permanent plans that you could own for lifetime. These policies build cash rate besides the death benefit. The cash rate can be borrowed against, and sometimes withdrawn. A disadvantage of a universal life insurance is that the customer’s insurance needs could change over time and the terms might not be very useful in the future. The policy may not fit your current needs. Flexible universal life insurance policies vary by company. Typically they allow you to adjust the amount of term coverage up or down within limits. After the first year you can also change the amount of payment in your universal life insurance. If the time comes when the policy is no longer wanted there is usually an option that you can surrender the policy and get the cash value that has built up in your universal life insurance. Everyone’s needs are different so I suggest you sit down with a good agent to review possible options.
Maybe you need to understand the terms of the policy you choose. And remember that universal life insurance often can extend for many years so it is important to purchase from a very stable company.
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