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 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.
Instant Universal Life Insurance Quotes Online
Reader’s Question:
The internet is a very good tool for people like me who wants to search for so many topics. Lately, I came across whole life insurance and universal insurance in Pennsylvania. I have a hard time understanding the two products; please I need your good help.
Carry
Scranton, PA
It is a little bit confusing actually, if you’re not familiar with it.
Both whole life and universal life insurances in Scranton will be able to provide certainty on our death benefits. Also they are usually being paid monthly and these two insurances are both overages of permanent life insurance
For the permanent life product line the very basic among all is the whole life insurance. You are paying monthly premiums for this and part of those monthly premiums is being shell out to accumulate and become cash value which is tax free. The money that you are paying is being invested by the insurance company to other sectors and they will guarantee you with dividends. But there is a cons to this, the dividend is constant it will vary according to the economic situation. It also allows the policy holder to loan against the cash value. What’s good with this is that the premiums are constant all through out.
On the other hand the universal life insurance, mix up the term life insurance with the money market investment. This type of insurance does not give you any guarantee on the return of investment and more often the incentive goes down more often than the whole life insurance.
Carry, if you are planning to get one of these insurance products be very specific about your queries to your insurance agent . Ask about your worries and doubts, also about your expectations to the product that you are going top choose. You can also opt to do a little shopping for free life insurance quotes online using so many insurance websites like this one. Use any similar form like the one you see in this page for you to get routed to free quotes which you can compare in your area.
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.
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.
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.
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