Why You Should Get a Universal Life Insurance
Universal life insurance is a type of permanent insurance policy that allows the policyholders to enjoy lifetime protection and gives them a chance to earn cash value over time. The insurance policy comes with different payment options in addition to the ability to change the death benefits and the insurance rates to fit particular circumstances. It is the best insurance option for anyone looking to adjust premiums and the coverage options and obtain easy access to the cash values. The beneficiaries receive income tax-free death benefits while insured under this policy.
How Insurance Policy Works
The insurance company breaks down the insurance premiums in two categories that involve the actual cost of insurance and the saving component known as cash value. The policyholder must cover the cost of the insurance to retain their insurance policy while the premiums paid over the minimum cost of insurance go to the cash value. The cash value savings are tax-deferred, meaning that it is easier to accumulate as much income as possible. The insured can then use the accumulated cash value to cover the cost of insurance instead of paying additional premiums.
Borrowing against Cash Value
The insurance policy allows the insured to borrow loans against their accumulated cash value without any tax implications or effect on the death benefit. The insurers also charge interest on the loan, although the rates are slightly lower than other lending institutions. However, failure to repay the loan may reduce the amount given to the beneficiaries as a death benefit.
Universal life coverage should give your family lifelong protection while at the same time allowing you to cover the insurance premiums depending on your current conditions. Most insurance professional will help you choose which permanent insurance policy is ideal between a universal coverage and a whole life insurance based on your family’s pressing needs.
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Order number 16567615
Project folder name David Petri
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Word count 300 – 350
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Delivered Apr 26, 2017
UNIVERSAL LIFE INSURANCE 1-2 1
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