It is great having life insurance to help protect your finances, isn’t it? The life insurance policy has proved over the years to provide financial benefits to beneficiaries on the death of the insured or at a certain period.
There is various type of life insurance policies available for sale. But in this article, we would be looking out for life insurance that incorporates flexible premiums and the benefits attached to it.
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The universal life insurance
This is considered permanent life insurance that incorporates flexible premiums. The universal life insurance policy helps protect the insured as long as the premium is being paid and you work towards fulfilling other requirements that concern the insurance policy.
The benefits of having universal life insurance are that it is flexible when it involves premium payment and you can decide on how the policy insurance cash value can be invested. Universal life insurance consists of two components which are COI and savings component.
CIO component
CIO stands for the Cost of Insurance. It determines the least premium amount that is required to be paid which in turn settles the administration charges and others that cover the policy.
Saving component
The saving component is more effective if the market is stable otherwise there is a high risk of losing all your money if the market rate is low. In this component, the interest is high as it undergoes an accumulation process thereby increasing the CIO.
Adjustable life insurance
When the insured find a need to change their insurance premium, death benefits, or face value coverage it is termed adjustable life insurance.
The insured person may find a reason to make changes on their insurance policy if the number of family members has increased for the insurance policy to fit in for everyone.
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Best universal life companies in 2021
- Best overall : Northwestern Mutual
- Best reputation: State Farm
- Best indexed universal life insurance: Mutual of Omaha
- Best variable universal life insurance: Prudential
- Best customizable policy: AAA Life Insurance Company
- Best value: Transamerica
- Best for military: USAA
There are other good universal life insurance company but listed above are the best so far. You can search on the website to view their policies and choose the one that best suits you.
Do universal life insurance premiums increase with age?
A guaranteed universal life (GUL) is an insurance policy that provides benefits when the insured is deceased and also helps the payment for the premium to change as time goes.
You have the privilege to choose what age you intend the policy to end. It is important to note that the higher the age the higher the premium to be paid. You can choose between the ages of 90,95,100,105,110 or 121.
Can I cash in a flexible premium adjustable life insurance policy?
The best time to cash out a flexible premium adjustable life insurance is when it is 15 years or above by then, the money would have gotten to a reasonable amount. You must note that the insured should still be alive before the money can be withdrawn to settle whatever emergency it is needed for.
Whole life insurance policy
This is another life insurance policy that protects the finances of the insured as long as premiums are paid when due. It is also called permanent life insurance. It is commonly purchased by many people because it gives you no limit of insurance like the term insurance policy.
What is the difference between whole life and universal life insurance policy?
They share the same similarities as they both offer permanent life insurance policies. The whole life insurance policy is known for its stable premium and cash value accumulation while the latter offers a flexible premium and death benefits.
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Conclusion
Universal life insurance has a lot of benefits that it offers to its customers. It is one of the best flexible premiums offers you can get as the insured can decide on the insurance policy to suit him or her. The death benefits system has made lots of people purchase the universal life insurance policy.
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