All About Universal life Insurance: August 2009

Thursday, August 27, 2009

Update August 27-2009 All About Universal Life Insurance By Insurance Experts

Unlike term and whole life insurances, this policy blends term insurance and an investment account into one contract. Also its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will provided the policy value is adequate to maintain the cost of the insurance.
This type of policy is adapted well to satisfy the changing insurance and investment needs of its owner.
(By Kyle J. Norton)

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What is Variable Universal Life Insurance?
By Elizabeth Newberry Platinum Quality Author

Variable universal life insurance is a type of permanent life insurance. Like regular universal life insurance, it’s much more flexible than whole life insurance. At the same time, it allows you to save tax-deferred interest.

In the name, “variable” refers to the policyholder’s ability to invest the accumulated cash value in a number of accounts. Like all permanent life insurance, variable universal life insurance builds cash value. The policyholder can choose among a wide variety of accounts in which to invest the cash value. “Universal” refers to the policyholder’s flexibility when it comes to making insurance payments. Of course, this flexibility is often based on the policy’s current accumulated cash value. In any event, variably universal life insurance differs from whole life insurance here because whole life insurance policies have a fixed premium. No flexibility.

There are a few ways in which a person can use a variable universal life insurance policy. First, and most obvious, is as a life insurance policy. The policyholder’s beneficiaries will receive death benefits upon the death of the policyholder. Too, a variable universal life insurance policy can be used as an investment tool. The policy’s cash value earns tax-deferred interest, which generically means the policyholder can save and save and save without having his or her savings taxed.

Another way to use a variable universal life insurance policy is to protect money from being taxed, and not just the money you’re investing. This option is used mostly by wealthy individuals who want to avoid the estate tax. These people will give large sums of money to their children, who have their own variable universal life insurance plans, and the money is covered under a gift tax exemption.

Aside from financial protection and tax advantages, variable universal life insurance policies are also beneficial for educational, retirement, and estate planning and saving. With so many options, variable universal life insurance is beneficial to all age groups.

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Fast and Easy Variable Universal Life Insurance Quotes Online Here
Term Life Insurance Online
Quick & Easy Whole Life Insurance Quotes Here

Article Source: http://EzineArticles.com/?expert=Elizabeth_Newberry

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Saturday, August 8, 2009

Update August 08-2009 Universal Life

Universal life insurance policies provide a flexible insurance solution for those seeking the protection of death benefits. The insured can flex the policy's premiums and benefits during the life of the policy while the policy creates a residual cash value. This allows one to adjust the nature of their life insurance so that it remains consistent with their actual needs.

Whole life insurance policies offer insured parties a guaranteed interest rate on the cash value of the policy. Universal life policies do this as well. For instance, a universal life policy may guarantee a minimum interest rate on the account of X percent. That percentage will be paid regardless of what happens to the insurance companies actual earnings. However, if the insurance company is able to invest premiums in a way that allows them to exceed the X percent rate of growth, they credit the policy of the insured at the higher rate.

This seems like an absolutely winning situation for holders of universal life policies. After all, they are guaranteed a minimum rate of return on the policy's cash value and may actually earn in excess of that rate, allowing them to pay less in premiums for the same level of life insurance coverage.

This feature of universal life insurance policies has contributed significantly to their popularity. However, despite the minimum guaranteed rate of return, interest rate levels can still impact universal life insurance policies detrimentally, making it necessary for consumers to consider all possibilities when evaluating universal products.

Although the insured is guaranteed a minimum rate of increase to the policy's cash value, this perk is somewhat meaningless if an insurance company's assumptions regarding interest rate behavior are proven to be wrong. All universal life policies are written with assumptions regarding the nature of interest rates in mind. If the company is unable to invest at a level producing the anticipated return, premium costs are forced upward to compensate for the shortfall.

This can result in policyholders being forced into premiums they may not be able to afford. This phenomenon is occurring today for those who bought universal life insurance when interest rates were in double digits. Insurance companies based their universal life insurance policies on the assumption that higher interest rates would continue for some time. This has not been the case, and many insured parties have found themselves paying higher and higher premiums in order to maintain their life insurance. For some, these premium increases are unmanageable, forcing them to cancel their policies completely.

Obviously, the risk of interest rate fluctuations makes universal life insurance less predictable than whole life insurance coverage. However, this unpredictability is not necessarily a reason to avoid universal life. If one is cognizant of the risk of premium price upswing if earnings fail to meet predictions and is prepared to pay the increased premiums in such situations, universal life remains very effective.

This is especially true in light of the fact that the alternative would be to simply buy a whole life insurance policy, which would likely require higher premiums payments right away and with no opportunity for relief at any point during the life of the policy.

Universal life advocates argue that the possibility for cheaper premiums when investment out performs or meets projections makes it a more sensible alternative than agreeing to higher premium payments through the entirety of a policy (whole life).

Whole life advocates maintain that the unpredictability of the markets and of interest rates makes universal life insurance products too unpredictable.

In the final analysis, universal life insurance products seem like a winning solution for those who understand and are able to handle fluctuations in the required premium. If one necessitates complete predictability and is able to overlook the possibility of a cheaper premium over the course of the policy, they may decide that a whole life package makes more sense for them than universal life insurance.

Evan C. Davis works in Medicare customer service and is the webmaster and owner of Easy Insurance Finder. Find out about universal life insurance and online universal life quotes at http://www.easy-insurance-finder.com.

Article Source: http://EzineArticles.com/?expert=Evan_C_Davis

How Much Should You Pay For Life Insurance?
By Jane B. Reynolds

So how much should you pay for life insurance? This is a very good question because there are individuals out there paying too much and some who are actually not paying enough because they don't have enough coverage. Fortunately, there is a happy medium here, but it is important that you know what it is.

Paying too much?

How does someone pay too much for life insurance? Well, there are two ways in which this is done. The first is that they have taken too much coverage. The higher the coverage, the higher the premium.

Another reason why individuals pay too much for life insurance is that they have not compared their prices with other companies and they have simply picked an expensive company.

The types of coverage

There are a number of factors that go into what you pay for life insurance. The first is the type of life insurance you buy. You have three types: Term, Whole, and Universal. Term is the simplest and the cheapest. It is not unusual to have a 20 year term policy in excess of $300,000 of coverage for $20 or $30 per month. The reason why it is so cheap is because it is very unusual that an insurance company has to pay out on a term. They are most likely going to pay out on a Whole or Universal.

A Whole life policy is going to be more expensive. As a matter of fact, the monthly premium could be more than double a Term policy for the same amount of coverage. This is because this policy is special. There is an annual dividend that enables this policy to gain cash value. It is also a guaranteed policy that will last for the remainder of your life.

A Universal life policy is a mixture of both Term and Whole and also packs a higher price tag. This is because it is a more flexible policy that allows for changes at any time. You can increase your amount if you need to. This is great when you can only afford a certain premium in the beginning, but can afford more in the future.

Another factor is your overall health when you open the policy. If you're overweight or have a health condition, your rate may rise.

Paying the right amount

To determine what the right amount is, you have to comparison shop. This means that you will need to check with multiple companies. You will have to acquire quotes and compare those quotes. And if the policy specs are not available immediately, ask for coverage outlines from each company so that you can compare the features and the cost associated with those features. If one policy is $68 and has the same exact features as one that is $99 per month, then you know the $68 is going to be more affordable. If you find another policy with similar features for $50 per month, but the $68 has all of the features you need, you know you should be paying $68 per month.

It all comes down to being patient. That way if you're supposed to pay $30 per month, you will find that $30 per month policy.

Jane Reynolds works for life-insurance-settlement.com; a company dedicated to making it easier for you to find quality life insurance in your state. Life-insurance-settlement.com is a directory of life insurance websites and makes looking for life insurance a one stop affair.

Article Source: http://EzineArticles.com/?expert=Jane_B._Reynolds

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Saturday, August 1, 2009

All About Universal Life Insurance By Insurance Experts

Definition
Unlike term and whole life insurances, this policy blends term insurance and an investment account into one contract. Also its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will provided the policy value is adequate to maintain the cost of the insurance.
This type of policy is adapted well to satisfy the changing insurance and investment needs of its owner.
1. Flexible coverage
The prime attraction of the universal life policy lies with its flexibility that allows owner of universal life insurance policy to increase or decrease the policy's face amount and evidence of insurability is usually needed for the increases. Its flexible coverage also established a life insurance contract that (subject to an insurability requirement) allowed the policy owner to:
a. Increase or decrease the face amount of insurance
b. Add more lives insured
c. Substitute one life insured for another
(By Kyle J. Norton)

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Life Insurance - Types of Death Benefit of Universal Life
By Kyle J Norton Platinum Quality Author

As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundle permanent life insurance products.In this article, we will discuss the types of death benefit of the universal life policy. The type of death benefit dictates exactly how much will be paid out upon the death of the insured in the future. The more common varieties of death benefit structures found in UL contracts are

1. Level
This death benefit remains level throughout the duration of the policy. This option is the least expensive since the risk decreases over time as the fund values increase.

2. Level plus cash value
This death benefit option pays out the balance of the cash value or accumulating fund along with the initial death benefit amount. This option provides a cost-effective means of providing clients with increasing life insurance coverage.

3. Level plus indexed
This death benefit increases annually by either a fixed percentage selected at time of issue or an external inflation index such as consumer price index.

The advantage of this death benefit is that the insured can have a fixed, increasing coverage amount, increasing either by the same percentage every year or by inflation

4 Level plus return of premium.
The return of premium death benefit option is similar to the indexed option. It has the same advantages and disadvantages. This type of death benefit has definite market appeal since the insured's heirs gets back whatever was paid into the plan with or without interest,plus the initial insurance coverage amount.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

Kyle J. Norton

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

http://life-insurance10.blogspot.com

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990.

Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

Understand Investment Options of Universal Life Insurance
By Kyle J Norton Platinum Quality Author

As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundle permanent life insurance products. In this article, we will discuss the investment options of the universal life policy. In fact, in order to compete with the mutual fund industry, insurance companies offering UL are increasing the number of their investment options to reflect the various investment types found outside of insurance policies. Here are the two main types of investment options offered within most UL insurance policy.

1. Guaranteed Investment Accounts

These type of accounts are available from daily interest accounts to 10 or 20 year guaranteed interest accounts. They appeal to risk-averse clients who would like to see a steady guaranteed growth within their UL plans without being worried of the fluctuation of the stock market. They are much less risky than Indexed Accounts but they also offer less potential return.

The guarantee may be that the return within the UL will be no less than

a) 80% of the return of the 5-Year government bond
b) Equal the 5-Year government bond less two percent
c) 90% of the return of the 5-Year government bond less one percent

In fact, most UL contract may guarantee that the GIA return will never be lower than a certain amount, say 2%.

2. Indexed Accounts.

The performance of these funds is usually linked to the performance of an outside index or mutual fund. They offer the policyholder the opportunity to participate in more aggressive and riskier investment types. Performance can be linked to

a) The S&P 500 and other stock market index
b) European, Asian and Australian Index accounts or international index accounts that are tied to the performance of some types of world index.
c) Some indexed accounts use the return of some particular mutual funds as the outside index.

The ways in which the return for indexed accounts is linked to the outside index counterparts also vary:

a) The contract may state that the return will be equal to the return of the outside index, less a percentage per year. For example, the return for a S&P 500 index account may be equal to the return of the outside index, less a certain percentage.
b) The contract may specify that the return will never be less than the return of an outside index, less a management fee. For example, an American Index account that guarantees its gain will be no less than the return of the S&P 500 less 2%.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://life-insurance12.blogspot.com

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

Equity Index Life Insurance Guide - How to Find Cheap Equity Index Universal Life Insurance Rates
By James J. Robinson

Equity index life insurance is a form of universal permanent life insurance wherein the cash value is determined by a certain index, like the S&P 500. While this type of policy can appear to be a tad more complex than other types of coverage; it is possible to understand how it works and then find cheap equity index universal life insurance rates if you decide that this policy is the type of coverage that will best meet your needs.

With an EIUL policy, if the index is higher at the end of the year the cash value of your policy will increase. If the index goes down, your cash value will not increase, but instead earn the minimum amount of interest guaranteed in your equity index policy.

Note that the amount credited to your equity index life insurance policy is determined by a number of factors such as participation rate, asset fees, and caps.

The participation rate is a percentage of the increase in the index that will determine how much money is credited to the cash value of your policy.

Asset fees are a stated percentage that is deducted from any positive increases in the index.

Caps represent the maximum annual increase that can be credited to the cash value of your policy.

There are several advantages to an equity index universal life insurance policy. One of the advantages is that you have a greater potential for higher interest rates then a more traditional universal life insurance policy. In addition, an EIUL policy offers you more protection from market decreases than a variable life insurance policy offers.

One of the main disadvantages to an EIUL policy is that this type of life insurance policy carries a higher risk factor than a traditional universal life insurance policy. Also, the cap rate may limit the maximum rate you can earn in a good market compared to the potential earnings of a variable rate life insurance policy. You also may be charged by the insurance company on a periodic basis.

Many EIUL polices come with such choices as a flexible premium payment plan, survivorship life, and a single-premium insurance policy.

To determine if an equity index life insurance policy may be a good choice for you and your family if a variable life insurance policy looks good, but seems too risky for your financial strategy, and if the guarantees of a universal life insurance policy make you feel more comfortable, but you feel the potential for accumulating cash value is too low.

Some of the main features of an equity index life insurance policy include, but are not limited to, tax deferred interest earnings, tax advantaged insurance protection, cash value protection against declining markets, annual lock-in of earnings, guaranteed minimum yearly returns, premium flexibility, and cash value access.

Before purchasing any type of insurance, including an equity index life insurance plan, do some research on any company you may be considering. In addition, compare equity index life insurance features, benefits, and premiums before choosing this or any type of insurance policy. Remember, the amount of interest you will be credited is in the hands of the insurance company you chose to use for an equity index life insurance policy, and the policy is only as solid as the insurance company you select.

You can learn about the financial strength of any insurance company you may be considering at A.M Best, Moody's, Standard & Poor's, and other independent rating companies.

To find cheap equity index universal life insurance quotes and cheap life insurance quotes on other types of policies from various life insurance companies then be sure and compare rates from at least 3 different companies. Visit http://www.CheapoLifeInsurance.com to compare rates easily and try to save yourself some money.

Get started finding cheap life insurance today!

Article Source: http://EzineArticles.com/?expert=James_J._Robinson

Life Insurance - Understand the Cost and Mortality Components of Universal Life Insurance
By Kyle J Norton Platinum Quality Author

UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundle permanent life insurance products. Most UL policies are actually distinguished by differences in their separate components. In this article, we will discuss The cost and mortality Components of Universal Life insurance

1. Cost of insurance (COI )

a) Yearly renewable term ( YRT )
The cost of insurance increased every year with the actual increasing mortality risk of the policyholder. These type of universal life policy performs very well in the early years because the cost of insurance charges are low. However, they tend to suffer in later years when the COI charges become very large.

b) Level cost of insurance
A popular alternative to the YRT is the Level COI structure where the cost of insurance is scheduled to remain constant throughout the duration of the policy. The main benefit of this plan is that, although cash values are lower in the early policy years, the policy performs well if clients want safe for retirement. Since UL contracts are long-term protection vehicles, the later higher values are desirable.

c) Hybrid cost of insurance
They have high early policy values due to the lower initial COI, but they do not suffer from severe erosion of fund values later in the policy since ultimate risk costs are capped. Other contracts allow the client to essentially select the mortality component from their term insurance such as term 5, 10, 20, 100 . . . and then shape a UL contract around these COI rates, complete with tax-sheltered fund.

2. Mortality

a) Guaranteed mortality
A popular Universal life policy where the cost of mortality rate of insurance is guaranteed throughout the duration of the policy. The premium is higher than non guaranteed counter part. If they have purchased a UL plan with YRT COI, the amount deducted every year will be exactly as specified in the contract.

b) Non Guaranteed mortality
Since the insurance company is essentially passing the mortality risk on to the client, the initial mortality costs and quite possibly, the future costs can be substantially lower than those charged in a guaranteed contract. This type of plan's advantages is the significant upside potential in the way of reduced mortality costs, but the downside risk is limited by way of the guaranteed maximum costs.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

Kyle J. Norton

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

http://life-insurance08.blogspot.com

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990.

Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

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All About Universal Life Insurance By Insurance Experts

Understanding Universal Life Insurance - Get the Facts Before Making a Decision
By Stan Jenkins Platinum Quality Author

When planning for your family's future and financial well-being you may consider taking out a life insurance policy. This can do more than cut a check to your family upon the event of your untimely death it can also be used as investment vehicles that can carry significant tax benefits. This article is going to discuss Universal life insurance. What it is, how it works, and its use as an investment.

So, what is Universal life insurance? This type of policy offers some benefits and flexibility not allowed by other types of life insurance policies. Universal life is a type of permanent life insurance, meaning that you will be covered until the death benefit has been paid, or you opt out of the policy for whatever reason.

A major benefit of universal life policy is the flexibility that it offers. You may increase or decrease the amount of coverage that you receive. You may also control the amount and the frequency of your payments. You may choose to increase or decrease the premium and you are also allowed to make lump-sum contributions.

Another benefit of universal life insurance is that at accrues cash value. The money you pay in premiums to the insurance company is invested in stocks, mutual funds, and other various investment vehicles intended to increase the value of the policy. The money earned in your policy will also be tax-deferred meaning that as long as the money is invested it is tax-free, you would pay tax on it once a payment has been distributed. However, if you need some cash you may also borrow against the cash value of your insurance policy. Since borrowing money is not considered income you would not pay tax on that money and any interest you pay on a loan may be able to be written off on your income tax return.

The investment possibilities and flexibility of universal life insurance make it a good option for a lot of people. However, you should always consult a competent professional on these types of financial matters.

Get all of the facts before committing to a long term investment. To learn more about universal life insurance or life insurance in general please visit http://lifeinsurancequestions.info

Article Source: http://EzineArticles.com/?expert=Stan_Jenkins

Tax Exempt Vs Non Exempt Universal Life Insurance Policies
By Kyle J Norton Platinum Quality Author

In order for the Universal life policy to be taxed exempt, it must pass the following tests

1. The exempt test

The Exempt Test is used to determine whether or not a policy is exempt. An exempt policy is one that regards as providing primary insurance protection.The test is a comparison of the accumulating fund values or cash values of the actual policy to the fund or cash values of a standard test policy at each policy anniversary. This Exemption test policy is a hypothetical 20-pay policy with endowment at age 85. On each policy anniversary, the cash value of the actual policy is less than, or equal to, the cash value of the exempt test policy.

An exempt policy can become non-exempt in the future if it fails the exempt test at any anniversary, but fortunately, most insurance companies put contractual provisions in their UL plans that guarantee the insurer will take all necessary steps to make sure that the policy remains exempt.

The consequences for a policy owner when the policy becomes non-exempt can be quite serious. Any gains that have been accumulated in the policy at the time of deemed disposition will be taxable to the policy owner in the year in which this disposition occurs. Income earned in the policy after the deemed disposition will be reported for taxation on an annual accrual basis.

2. Maximum Tax Actuarial Reserve or MTAR

This is the amount the insurer can deduct from the universal life policy for all expenses, such as insurance premium, administration charge.. when they calculate their own corporate income tax. For the UL policy remain exempt

a) Its values cannot exceed the MTAR line
b) The face amount or death benefit of the policy cannot grow more than 8% each year.
c) The cash value of the policy at the tenth anniversary and each subsequent policy anniversary cannot be more than 250% of the cash value of the third preceding anniversary.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

All rights reserved. Any reproducing of this article must have all the links intact. I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

Whole Life Insurance, Universal Life Or Variable Life?
By Scott Lunt Platinum Quality Author

You may want whole life insurance but did you know that it is only one type of permanent life insurance? Here's a brief overview of the different types to help you when shopping for a quote.

Unlike term life insurance, permanent life insurance doesn't have a set term that will end and your beneficiaries no longer get a death benefit. What's more, permanent life insurance policies can build up cash value, money that you can receive before you die, and thus are also considered a supplementary investment vehicle. The basic types of permanent life insurance are whole life insurance, universal life insurance and variable life insurance.

With whole life insurance you pay a set premium for the life of the policy. The amount of your death benefit also stays the same. The savings portion is usually a dividend.

Universal life, also known as adjustable life insurance, is a more flexible policy in that you can increase the death benefit as long as you pass a medical exam. Your cash value typically grows at money market interest rates and after awhile can be used to help offset your premium.

Variable life pays a death benefit and also accumulates cash value based on investing in stocks, bonds and mutual funds. Because of this, there is an element of risk.

Permanent life insurance usually costs more than term life insurance because of these features. After you've decided what type of insurance is best for your situation, make sure to get several comparison quotes as rates can vary from one company to another. You can get quotes online from either the life insurance companies' Web sites directly, or through a Web site that allows you to get several comparison quotes at once.

Before you buy, you'll want to thoroughly understand the policy and don't be afraid to ask your agent or the company representative questions.

To get free comparison whole life insurance quotes or learn more about whole life insurance visit LowerYourInsurance.com Scott Lunt is a freelance writer.

Article Source: http://EzineArticles.com/?expert=Scott_Lunt

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All About Universal Life Insurance By Insurance Experts

Definition
Unlike term and whole life insurances, this policy blends term insurance and an investment account into one contract. Also its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will provided the policy value is adequate to maintain the cost of the insurance.
This type of policy is adapted well to satisfy the changing insurance and investment needs of its owner.
1. Flexible coverage
The prime attraction of the universal life policy lies with its flexibility that allows owner of universal life insurance policy to increase or decrease the policy's face amount and evidence of insurability is usually needed for the increases. Its flexible coverage also established a life insurance contract that (subject to an insurability requirement) allowed the policy owner to:
a. Increase or decrease the face amount of insurance
b. Add more lives insured
c. Substitute one life insured for another
(By Kyle J. Norton)

Recommended Program
Live Your Life Insurance
Teaches You Surprising and Viable Strategies
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The Advantage and Disadvantage of Universal Life Insurance
By Kyle J Norton Platinum Quality Author

There are many factors that universal life policyholder must consider when go into deciding which investment options to choose within a UL plan. Guaranteed interest accounts, for example, are less risky and indexed accounts which have a larger potential rate of return.

1. Advantage

a) Most UL plans allow the policyholder to allocate deposits in a way that matches their risk philosophy. Such a plan may change its investment allocation as the policyholder gets older, negating the need for the policyholder to monitor the UL investment mix to ensure that it is consistent with the policyholder's investment philosophy as that changes.

b) Tax-advantaged status

Investments that invest in the insurance company's general funds, have advantage of prefer tax status, no matter which outside index is linked to particle index or mutual fund account, if the actual funds is invested in the general fund of the insurance company, they will not be subject to annual taxation. If the client would like to invest outside of the company's general fund, many insurers have segregated funds attached to their UL contracts and of course, any investment return of these funds is taxable annually.

c) Depending on the type of fund, the income may benefit from tax preferred status if the growth in the fund can be attributed to capital gains or dividends.

d) The used as a carrier fund or shuttle account to automatically receive proceeds from the sheltered accounts should the plan become non-exempt and the funds must be refunded.

e) Non-sheltered investment accounts allow a policy to become paid-up early, often as quickly as with one deposit.

f) If the UL plan can be registered, a non-sheltered account becomes a sheltered account as, once registered, it forms part of the policyholder's 401k or RRSP plans.

g) Investment returns accumulated in the universal life policy is tax free because they form part of life insurance, if payable to beneficiary upon the death of life insured.

2. Disadvantage

a) Fund invest outside of the company's general fund, many insurers have segregated funds attached to their UL contracts and invest outside of the company's general fund. any investment return of these funds is taxable annually.

b) Limited choice of investments.

c) Investment return of funds withdrawn from universal life insurance policy are taxable.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

Kyle J. Norton

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

http://lifeinsurancexiii.blogspot.com

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

Characteristics of Universal Life Insurance
By Kyle J Norton Platinum Quality Author

As we mentioned in the previous article, universal life (UL) was introduced in 1981-82, in response to a historically high interest environment and a consumer awareness of the value of self-directed investments because traditional insurance could not compete with short-term interest rates.
Here are some characteristics as follow
1. Account Value
The account value of a universal life plan is the sum of the gross values of all the investment accounts within the policy, including income, after deductions for the current month expenses.

2. Cash Surrender Value
The cash surrender value of a universal life plan is the current account value, less outstanding loans and surrender charges. Surrender charges are usually based upon a multiple of the minimum required premium for the policy back-end charges are larger than front-end charges.

3. Premiums & Contributions
Premiums are those amounts needed to pay the cost of insurance charges and other expenses for the policy. Deposits are those excess amounts that are of a pure investment nature.
4. Death Benefit Options
The amount of death benefit payable under a universal life policy is based upon 1 of 4 different options
a)Level death benefit: Level coverage throughout the lifetime of the policy.
b) Level death benefit plus cumulative gross premiums: Death benefit increases by the amount of each gross deposit to the policy.
c) Level death benefit, indexed: The amount of death benefit increases, yearly, by a predetermined percentage.
d) Level death benefit plus account value: The total amount of death benefit is always equal to the initial face amount, plus the gross account value. This is the most popular chose by 90% of universal life insurance policies' owners because
the gross account value is tax free.

5. Premium Flexibility
The premium deposits, plus accrued investment income, must be sufficient to pay for all expenses and deductions, so as to keep the policy in force, tax exempt life insurance contract, flexible premium.
Universal life is not for every consumer
It's flexibility tends to be reflected in much higher administration costs than are found in traditional whole life plans and the variable nature of the plan may make it unsuitable for those clients wanting guarantees

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

Kyle J. Norton

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://life-insurance07.blogspot.com/

All rights reserved. Any reproducing of this article must have all the links intact.
I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

Universal Life Insurance Quotes
By Kevin Stith

Have you ever wondered what will happen to your loved ones when you die, especially if you are the family breadwinner? This is such a big worry, particularly to those whose children are still very young and their spouse is not working. To secure your family’s future in the event of your death, it’s time that you find out about Universal Life Insurance.

Universal life insurance quotes provide information on conditions covered, insurance rates, exclusions and benefits of purchasing universal life insurance.

How can you obtain universal life insurance quotes? It is simple. All you have to do is to go online and check online insurance companies that will give you instant quotes online. You just have to fill up a form and submit it. You will get your quote in no time at all – usually within minutes. An agent assigned to online inquiries will probably give you a follow-up call as well to see if you have any further questions or to sell you a policy.

If you are not Internet savvy, you can call various insurance companies and speak to an agent. They will be happy to explain universal life insurance to you and offer quotes. Make sure you have all the details about your needs together before you speak with an agent or fill out any forms online, to make sure that the quotes you receive are tailored to your specific needs. Both online insurance companies and insurance agents will be happy to assist you in comparing quotes and they types of coverage you will be receiving.

Universal Life Insurance provides detailed information on Universal Life Insurance, Universal Life Insurance Quotes, Variable Universal Life Insurance, Universal Life Insurance Policy Definitions and more. Universal Life Insurance is affiliated with Free Life Insurance Leads.

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Universal Life Insurance - Is it a Good Investment Strategy?
By Julie Shields Platinum Quality Author

Universal Life Insurance, also called Permanent Life insurance, is the type of policy where you also hear the term, "cash value". The cash value is the difference between the amount of your premium paid, and what the insurance's actual "costs" are. The difference accrues into a cash value, and the insurance company pays interest on this cash value it accumulates. Often times, in the earlier years of the policy, your premiums heavily outweigh the insurer's "costs", so you are basically accruing "cash value" on a tax-deferred basis. Your death benefits and premiums are flexible, without having to rewrite the policy, if you decide to make changes. The cash value can be used to have your premium deducted, if you have enough value. You also hear about people borrowing against their "cash value", however, these loans will be deducted from the death benefit, it not repaid and also will become taxable.

Many people chose Universal Life or Permanent Life as part of an investment strategy, they build cash value with tax deferment, if interest rates are high-they will earn interest above the insurer's costs, and some policies are written as Variable Universal Life policies, where you can even direct investments in mutual funds and other stock and bond issues where the risk of return (or loss) may be available. You can also borrow against the cash value, in the event of an emergency, and they offer flexibility on the benefit or premium.

The advantage of Universal Life policies is the flexibility they offer. You can invest, borrow, and set premiums and benefits to fit your budget. The disadvantage is that you can lose cash value through a downturn in the basis investments, low interest rates or if the insurer's costs deplete the cash value, making the policy worth nothing. If the cash value gets depleted due to downturns in investments or the insurer's costs exceeding the cash value, the policy is expired, your premiums lost and you have no death benefit.

In contrast, Term Life Insurance is a policy that is purchased for a set death benefit amount, with set premium payments and a guaranteed payment to your beneficiaries, as long as you keep the premium payments current, no matter how the insurer's costs or investments perform. It is a much safer and guaranteed life insurance policy, if your goal is to have a benefit paid after your death, to help your loved ones with expenses. Term Life Insurance is not really part of an investment strategy, but a protective strategy. Universal Life Policies, as you can see are basically, a financial investment growth strategy, with risks involved that may or may not take care of expenses after your death. It is often called permanent, because, "it is permanent, as long as your cash value pays the premiums, or you pay the premiums, but your death benefit is not a guaranteed value, but it assumes it will be permanent as long as premiums exceeds costs, but it is NOT guaranteed your whole life". As you can see, life insurance can be confusing, but may not be the best investment strategy.

The author lives with her husband in Maryland, with their two dogs and cat. She put together the website http://www.affordable-life-insurance-guru.com in order to help the everyday person navigate the often confusing world of life insurance

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All About Universal Life Insurance By Insurance Experts

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Analysis of Universal Life Insurance Sales - Variable Life is Now a Gamble - Crisis For Clients
By Donald Yerke Platinum Quality Author

Individual life insurance sales of variable life and universal life is a gamble for clients. Current analysis also reflects a reluctance of agents making large variable or universal life sales. Which crisis is worse? Should agents quit pushing variable life insurance, or are clients just being overly skeptic? Here is the information you need to decide.

In the first three months of 2009 life insurance sales premiums did not become paralyzed. Instead, sales plunged to where premiums are down over 25%. This is a level not seen since the early 1940's.

Term insurance, which typically has no cash value, has little change noted. This means there is a reason for the market based cash value policies of universal life and individual variable life sales experienced a drastic beating. These policies are very risky during a period of an economic downturn. The first quarter of 2009 is a wake up call. Variable Universal Life sales premiums equaled only 40% of the amount collected during the last quarter of 2008. Variable Life, not as risky as variable universal life, countered with a decline of about one-half as much.

Insurance representatives were stunned by client reactions, and in many cases did not present variable products to their potential clients. Many clients having been burned stuck to purchasing the less fluctuating vehicles of term life insurance and whole life.

As a result, the so-called "financial experts" were burned on sales and commission earnings. The positive analysis of this is the fate of insurance agents not truly qualified to sell financial asset related sales. Thousands of these agent trainees left the business or started selling basic products like those that they should have done at the beginning.

The final analysis is that people will continue to buy life insurance for protection purposes. However, consumers will stay more cautious when viewing insurance as a super investment vehicle. In turn, sales agents making variable universal life, variable life, and equity indexed annuity sales will be more careful in explaining the risks that go along with the sale.

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is. Watch for his new paperback book debuting on Amazon this summer. It is loaded with great insurance marketing, brokerage, sales, and recruiting information. Come and get your FREE "Think and Grow Rich" Ebook by Napoleon Hill instantly. The website address is http://www.agentsinsurancemarketing.com. Save more than 60% Visit the website to get a package of Ebooks at under $1.99 each.

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Universal Life Insurance
By Kevin Stith

Life is so uncertain and so many things can happen -- even the things you least expect, such as a sudden death. You could be very strong one minute and suffer from and a heart attack and die the next minute. However, one thing is for sure, the loved ones you leave behind will be devastated and be even more in distraught if they do not have the means to pay for your funeral services. That is why it is important that you secure the future of your family by getting a universal life insurance.

Universal life insurance is one type of life insurance. It is characterized by flexible premiums and adjustable benefits. As your insurance needs change, your policy can also be adjusted; however, this action requires approval. The benefits of securing a universal life insurance policy include flexibility, security, tax-deferred account value growth and tax-free death benefit.

A universal life insurance plan is flexible because you can adjust your premium payments and death benefits according to your needs. Even with your changing insurance needs, you are secure that your loved ones will not go through a financial crisis in the event of your death. Aside from these two benefits, you can also get tax-free and tax-deferred benefits. Yet, the proceeds that your beneficiaries will get are income tax-free, and the account value of your policy earns interest and is federal income tax deferred.

Getting a universal life insurance policy gives you lots of benefits. But, if you are still in doubt of these significant advantages, you should consult an insurance agent to better explain them to you. You might as well ask other important information regarding premiums, savings, reserves and payments to ensure that you get the right life insurance policy for you.

Article Source: http://EzineArticles.com/?expert=Kevin_Stith

Whole Life Vs Universal Life Insurance
By Donald Lusan Platinum Quality Author

You may find it a good idea to look at "whole life vs universal life" insurance. You probably wonder which is best for you and your family. Because more people are familiar with it let us take a look at the mechanics of whole life insurance policy first and find out once and for all which is best "whole life or universal life" insurance.

Whole Life InsuranceI have a certain fondness for the whole life insurance policy because of the myriad of benefits it provides. There is the guaranteed level death benefit that you cannot outlive. You also have a guaranteed premium when you purchase whole life insurance. Your premium never goes up. The whole life policy has a cash value as well as a dividend if the company performs well. The cash value is guaranteed and also earns a minimum amount of interest. Dividends are not guaranteed. In our comparison of whole life vs universal life we must consider that the whole life policy dividend can be used to purchase paid up additions...which are really small paid up policies purchased each year which are added to the base policy. These paid up additions increase your death benefit and also have cash values. The dividend can be paid in cash or they can be used to reduce premiums. With all these benefits when we look at whole life vs universal life we must also consider that there is a certain rigidity built into the whole life policy. That is the policy in a nutshell. It is a good policy but quite inflexible.
Universal LifeUniversal life provides a little more flexibility than the whole life policy. Life insurance buyers today tend to favor term life insurance. Universal life is built on a term base. It is basically a term policy with an added savings element. You maintain a level death benefit but you also have the option of reducing the death benefit whenever you like. You can also increase the death benefit but you may be required to provide evidence of insurability at the time you choose to make the change. The premium you pay usually remains level but you do have the option of reducing it. Here is where it is flexible. Let us suppose you bought a universal life policy and you applied 30% of your yearly premium to pay for death benefit and 70% of it to saving. You may decide 5 or 10 years down the line that you don't need as much life insurance as you now own. You can reduce your death benefit and apply the applicable cost to your savings plan. Let us suppose, on the other hand, you decide that that you need additional life insurance 5 or 10 years down the line. You can reduce the amount of premium applied to savings and use it to purchase the additional term insurance you need. That means there would be no need for any additional outlay in premiums. You must, however, bear in mind that you have to qualify for the additional insurance. The life insurance company may ask for a medical examination. Whole life vs universal life...those are the basic differences. You may add the waiver of premium rider to either policy. The cost for the rider for the universal life policy is much lower than of the whole life as the premium for the rider only applies to the portion of the premium applied to death benefit. With the whole life policy the entire premium is waived in the event of disability. You may also add the accidental death benefit rider to either policy.

For additional information on whole life vs universal life go to =>http://www.lifeinsurancehub.net/permanent-life-insurance.html

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald's website is: http://www.lifeinsurancehub.net

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Universal Life Insurance Vs Whole Life Insurance
By James J. Robinson

What are some of the pros and cons of whole life insurance vs. universal life insurance? How does one decide which type of policy to purchase? Read on to learn some of the basics of both types of coverage.

Whole life insurance and universal life insurance are both permanent types of life coverage instruments.

There are four basic parts to both universal and whole life. The mortality cost, which shows what part of your deposit covers the death benefit of the policy. The administration charges which include the premium taxes and costs incurred by the insurance company to manage your policy.

The savings and investment portion is the amount of money you have left to after the mortality costs and administration charges. This money is sometimes called the cash value, fund value, or cash surrender value.

The fourth part of a whole or universal insurance policy is called the return on the savings. This is the interest rate that is credited to the cash value of your policy every year.

A whole life policy is a permanent policy where the premiums are set at a fixed amount and never change until you have paid funded the policy in full. Also, the amount of the death benefit will not increase or decrease over the life of the policy.

One of the drawbacks to a whole life policy is that the insurance company does not have to disclose the mortality cost or the administrative costs to you. The savings or investment portion of a whole life insurance policy is determined by the excess interest, savings in the mortality cost, the operating expenses to maintain the policy, and you are at the mercy of the Board of Directors of the company who decide what they are willing to pay.

You also can't chose where the money in your cash value account is invested, and the insurance company may not disclose the rate of return to you either.

A universal life insurance policy has flexible premiums, an adjustable death benefit, and the cash value of a universal life insurance policy is interest sensitive, meaning if interest rates increase so will the value of your universal life insurance policy.

In addition, with a universal life insurance policy, the insurance company will disclose both the mortality costs and the administrative costs to you.

The premium levels and the death benefits can be adjusted by you if you choose to do so. With whole life both the premiums and death benefit are set in stone at the time you buy the policy, which could lead to higher returns.

With a universal life policy you can put any excess money into the policy which will increase the cash value of the policy immediately.

In conclusion, if you are more comfortable with a fixed premium and death benefits, then a whole life policy may be your best choice. However, if you want more flexibility and have the time to monitor your policy, then a universal life policy may be your best option.

Whichever type you may choose, always compare life insurance companies, their premiums, rate of return, and customer service. Don't feel pressured to buy a product that you feel may not meet your needs or wants. Shop around for an agent you can feel comfortable with and who is sensitive to your individual situation and life goals.

Get started comparing life insurance quotes now!

Article Source: http://EzineArticles.com/?expert=James_J._Robinson

Whole Life, Term, Or Universal Life Insurance - How to Determine What's Best For You
By Will Barnes Platinum Quality Author

A whole life insurance policy covers you for your entire life. Your death benefit and premium in most cases remain the same. Whole life also builds cash value, which is a return on a portion of your premiums that the insurance company invests. Your cash value is tax-deferred until you withdraw it and you can borrow against it.

A whole life insurance policy may be used as a part of your estate planning. Consequently, whole life insurance is a good choice for you if you want to ensure that you have a life insurance policy in place for your entire lifetime and can comfortably afford the premiums, of if it fits within the framework of your estate or retirement plan.

While whole life insurance is designed to provide coverage on the insured for the insured's entire life as long as the premiums are paid and the policy has not been surrendered, term life insurance provides coverage only for a fixed period that is stated in the policy. It can be for one year or up to thirty years. Term insurance premiums are extremely affordable for a person in good health up the age of fifty. After that age, the premiums start to get progressively more expensive. Term should be purchased if you only need insurance for a specific period of time, such as if you want an outstanding fifteen or thirty year mortgage balance paid off in the event of an untimely death.

Universal life is a type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element, like whole life insurance, which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder's circumstances change. In addition, unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums.

Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums.

Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly. As an example, the Indexed Universal Life may base the performance of its cash values on one of several indices, including the S & P 500 or the Dow Jones Industrial Averages. Moreover while it provides an opportunity for growth, it has guaranteed returns and provides considerable stability. In that it provides both growth potential and a safety net, it is excellent for college planning or retirement supplemental planning.

Keep up to date with timely financial tips and subscribe to the newsletter. Visit http://www.yourinfo.blogspot.com Will Barnes is a financial and personal growth consultant based in Illinois.

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Variable Universal Life Insurance – Is It Different From The Others?
By Elizabeth Newberry Platinum Quality Author

A variable universal life insurance policy is a form of whole life insurance.
With a variable universal life insurance policy, not only are you offered
flat-out life insurance, but you are also offered more security and investment
components that are not offered with other kinds of life insurance policies.

The difference between a variable universal life insurance policy and any other
kind of life insurance policy is that not only does variable universal life
insurance offer a cash value element, it offers more flexibility and control
over that cash value element than any other type of insurance.

A variable life insurance policy will insure you for life, and any cash
accumulated with a variable universal life insurance policy is tax-deferred.
This means you will not have to pay taxes on the money you earn.

Admittedly, there are investment risks that come with variable universal life
insurance policies. If your investments are very successful, the person whom you
have named as your beneficiary will be paid a fairly high death benefit.
However, even if your account’s investments are unsuccessful, the person whom
you have named your beneficiary will still be paid a minimum death benefit in
the event of your death. Even more good news? Variable universal life insurance
policies are regulated by Federal Securities Laws, so you can purchase them with
confidence. They even have to be sold with informative brochures so you know
exactly what you are getting.

With all the different life insurance policies out there, not to mention and the
pros and cons of each, your safest bet is to talk with a life insurance agent
before committing to one particular life insurance policy. Express your needs
and the amount you are willing to spend. Be sure to shop around, as well. Get
quotes from several different life insurance agents and find out if your needs
are covered before choosing the one that is right for you.

Visit our site to buy affordable auto insurance, to get Texas car insurance, or to get a individual health insurance.

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Understand Universal Life Insurance Surrender Charge
By Kyle J Norton Platinum Quality Author

The surrender charge is the difference between the accumulating fund and the cash value accumulated in the insurance policy that the policy holder can access at any time, often called cash surrender value.

Surrender charge schedules are difference between insurers and between the UL plans available from each insurer. Some plans contain a very heavy level of surrender charges that apply for a lengthy period of time of more than 10 years. These charges serve to artificially suppress the cash values of the policy. Other plans have low or no surrender charges at all.

Therefore, if policyholders who may want to access the cash values of the policy early in the contract will prefer to have lower surrender charges in their plan.

Higher surrender charges are not necessarily a negative for all policyholders. Heavy surrender charges are ideal for those policyholders using their UL plan as a means of sheltering funds from tax because:

1. Using low early cash values provides the means for the pricing actuary to inflate future cash values through investment bonuses, thereby enabling much larger cash values in later years.

2. Surrender charges are used to suppress cash values and cash values are usually compared to a test policy during exempt testing. Therefore, the policyholder can deposit larger amounts into the UL plan in the early years and shelter more funds for a longer period of time. For more details, see the Rules and Regulation section later in this course.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

Kyle J. Norton http://lifeanddisabitityinsuranceunderwriter.blogspot.com/ and

http://life-insurance16.blogspot.com

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Definition
Unlike term and whole life insurances, this policy blends term insurance and an investment account into one contract. Also its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will provided the policy value is adequate to maintain the cost of the insurance.
This type of policy is adapted well to satisfy the changing insurance and investment needs of its owner.
1. Flexible coverage
The prime attraction of the universal life policy lies with its flexibility that allows owner of universal life insurance policy to increase or decrease the policy's face amount and evidence of insurability is usually needed for the increases. Its flexible coverage also established a life insurance contract that (subject to an insurability requirement) allowed the policy owner to:
a. Increase or decrease the face amount of insurance
b. Add more lives insured
c. Substitute one life insured for another
(By Kyle J. Norton)

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Group Universal Life Insurance - Tips and Information You Can't Miss
By Chris Smitts Platinum Quality Author

Group Universal life insurance is a type of insurance policy that lets you change the amount of insurance that you need overtime based on different situations or events in your life. This insurance is generally offered by employers to employees as a way of protecting them and their families from financial loss due to a death.

The benefits of this type of policy are much more akin to a whole life insurance and offer much more than a term life insurance policy would. These policies are flexible, have tax-free benefits, and also allow you to put money into an account that is sheltered from taxes, where the money will be allowed to grow on a tax-deferred basis.

When comes to choosing a group universal life insurance policy, you might not have many options as an employee of a company. However you should still take the time to learn about the policy or policies being offered to you and figure out whether they are advantageous to your needs or ineffective.

The Universal Life Church - What it is and What it Isn't
By Matthew Maiden

As a minister in the Universal Life Church for over 25 years, I get a lot of questions about what the ULC is and how it is different from other churches so I thought I would answer some of the questions here.

Kirby Hensley was an ordained Baptist preacher who was at odds with the theology of the major religions and the way they went about ordaining people so he formed his owned religion.

Hensley believed that anyone who was sincere in their beliefs and was doing what he or she felt was right, then they were already ordained. Armed with scriptures that supported his claims, he set up a legal church to be the headquarters and began ordaining anyone that requested it.

These new ministers were now legally associated with a "real" church and now had the ability to start their own ministries and small home organizations.

Since the beginning in 1959, the ULC has ordained millions of people around the world from every denomination, culture, color, and personal creeds.

While it's true that many of these people did this for personal gains like avoiding the draft during the Vietnam era, or thinking that they could get away with not paying their taxes, the majority are very honest and operating from their hearts.

As a matter of fact, not only does the ULC condemn this activity, but it doesn't work. Members that intend to operate under a tax exempt status must go through the same procedures that any other non-profit organization would in order to qualify for the benefits.

Many people over the years thought it would just be fun to be a minister but most have found it necessary to help them start their own wedding ministry. Presiding over weddings has become the number one reason to ordain a member. Small wedding chapels have become a great source of extra income for lots of couples and having these credentials has made it possible.

The Universal Life Church has helped people from all walks of life to fulfill their dreams to start their own ministry and follow their own paths to spiritually. If you feel "called" and have a desire to "do that which is right", then you too are welcome to join this growing community.

Did you know that Johnny Carson and The Beatles are members?

If you would like to learn more about the Universal Life Church please visit: http://get-ordained.blogspot.com/ and read about some of the other celebrities who are ordained ministers in the ULC.

Matthew Maiden is the host of The ULC Radio Program and would like you to give a listen to the show.

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What is Variable Universal Life Insurance? - An Explanation to Shed Some Light on the Topic
By Ryan Richardson Platinum Quality Author

Life insurance policies have evolved a great deal over the years. There are a tremendous number of options and variables that you have to consider when trying to find the plan that is right for you and your family. I cannot tell you which type of plan is best because everyone's situation is unique and what may be great for one person may be completely wrong for someone else. The intent of this article is simply to give a brief explanation of variable universal life insurance. What it is and how it compares to some other popular types of coverage.

A variable universal life insurance policy is a form of permanent life insurance which means that it does not expire as long as you remain current on your premium payments. Unlike a term policy which will expire at the end of its specified time period. Like other forms of permanent life insurance a variable universal plan will accrue a cash value because a portion of the premium payments are invested in various funds.

With a traditional universal life plan a policyholder does not have any control over what types of investments are made. A variable universal policy provides the premium payment and death benefit flexibility of a universal life insurance policy and the investment flexibility of a variable insurance policy. With this type of plan you have the option to decide what types of investments your premium dollars go into. The face amount of the policy and the cash value can go up or down because of the investments made. Because the policy owner assumes the risk of losing money with any type of variable insurance policy these types of plans are considered securities and are regulated by the SEC and can only be sold by agents who have passed the National Association of Securities Dealers exam.

A variable universal life insurance policy combines some of the benefits of both variable and universal types of coverage. This type of policy is not for everyone though. If you don't have a certain degree of risk tolerance you may want to go with something a little bit safer. However some people enjoy having a say in how their premium payments are invested and may actually feel safer by having the ability to determine what investments are made. If you're considering this type of policy you'll definitely have to weigh the pros and cons and of course those pros and cons will be different for everyone depending on your point of view.

Whichever type of life insurance policy you decide to go with, it's always a good idea to do a little comparison shopping before committing to a particular insurance provider. There's a great deal of competition among insurance companies and a little comparison shopping may reveal an opportunity to save quite a bit of money. You can quickly and easily find companies that offer the same coverage and then choose the one that offers the best price.

For a free, no obligation life insurance quote or to get a list of top rated insurance providers in your area visit http://get-online-life-insurance-quotes.com

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Universal Life Insurance Quote – Advantages and Disadvantages of Universal Life Insurance
By Elizabeth Newberry Platinum Quality Author

When you think about life insurance, two kinds probably come to mind: term
life insurance and whole life insurance. However, before you start looking for
life insurance quotes, you should also know about the advantages and
disadvantages of another kind of life insurance: universal life insurance. You
may find that universal life insurance is the perfect mix of term life and whole
life insurance policies.

If you’re considering obtaining a universal life insurance quote, you may be a
bit surprised to find that there are several advantages to universal life
insurance policies. First, your universal life insurance policy offers permanent
protection, unlike a term life insurance policy. Second, your universal life
insurance policy offers accounts for cash value that are low risk. Plus, the
cash accumulation is tax-deferred, which means you won’t have to pay taxes for
the cash your policy accumulates. In addition, your policy’s cash value account
can also earn interest with market rates. Third, you have the options of
withdrawing or simply borrowing from your universal life insurance policy, a
convenience that is similar to a whole life insurance policy. Lastly, your
universal life insurance policy offers both face amount and premium
flexibilities.

Yet, even though your universal life insurance policy will offer flexibility, it
will not offer the account flexibility needed to move your money around or
invest in different accounts. There is also no guarantee that your universal
life insurance policy will earn cash value, nor is there guarantee that your
universal life insurance policy will be in effect when you need it if sufficient
premiums have not been paid.

Some people prefer universal life insurance policies because they are sprinkled
with the benefits of both term life insurance and whole life insurance policies.
But, before you decide to get a universal life insurance quote, make sure you
are aware of all the advantages and disadvantages that will come with the
universal life insurance policy.