Universal life insurance is a type of permanent life insurance providing low-cost life coverage (like term) to protect dependents, while offering an investment opportunity (like whole) to grow their savings and net worth.
The flexible death benefit, savings, and premiums of universal life insurance make it a good fit for many families. If interested, consumers have the ability to instantly compare free universal life insurance quotes to find the best company with affordable rates and policy. Because of this flexibility, universal life insurance is also known as "Flexible Premium Adjustable Life Insurance".
State laws require that people insure their cars, and mortgage companies require homeowners to insure their homes. Common sense mandates that we protect our financial assets with insurance, but many people fail to insure their most important assets - their lives.
Why Choose Universal Life Insurance?
Universal life insurance is a hybrid, combining some of the advantages of both term life insurance and whole life insurance. Although the premiums are usually higher than those of term, the policy has a cash value like whole life and can be used to save for retirement or expected future expenses like college. Universal life premiums are invested in the stock market so the investment has a slightly higher risk than permanent protection, but it also has the potential for higher returns on the investment and significant growth.
Though rates may be slightly higher than term life insurance rates, the increase in premiums can be offset by the greater financial security and nest egg that may build over the years as a policyholder nears retirement. If you are interested in life insurance specifically tailored for individuals already in or close to retirement, check out a guaranteed lifelong protection plan.
Both whole life insurance rates and term life have fixed monthly payments, but universal life has a minimum payment, making it more flexible. Amounts over the minimum payment are diverted to the investment portion of the universal life insurance policy. If a policyholder is unable to make premium payments, they are deducted from the cash value of the policy until it is exhausted. This provides extra security since missing a few payments due to an unexpected financial crunch doesn't mean the policy will be cancelled or voided.
The amount of the minimum monthly premium will depend on the amount of coverage, the age, current health or physical condition, and the lifestyle (smoker, regular exercise, hobbies) of the insured person. While universal life insurance is more expensive than term life insurance, which has no cash value, it is much more affordable than whole life insurance, which does have a cash value.
Shopping for the best universal life insurance rates can make universal life an affordable alternative to whole life insurance, and it provides the value of a financial instrument. Shopping around for online quotes can help consumers find a cheap life insurance policy fit for their needs.
Consumers who have auto insurance, home insurance and other policies with a single insurance provider should consult their carrier about rates for universal life insurance. Many of the best insurance companies offer customer loyalty discounts, sometimes up to 20%, for every additional policy that is purchased by an insured person.
Getting free quotes is much easier than it used to be. Consumers can enter basic personal information to compare universal life insurance and find the best, affordable policy. Rate comparisons of their current insurance company with the rates of other top carriers can help policyholders evaluate which company offers the lowest minimum premiums with the best policy terms.