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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Universal Life Insurance Policy Definitions
By Kevin Stith
A universal life insurance is a financial resource that provides money for your family in the event that you die. The money that is received by your family will come as a big help, since it will cover funeral costs, childcare, housing and other expenses that are difficult to compensate for without this type of insurance.
But with the many insurance companies and agents in the market today, it is difficult to know which universal life insurance policy is the best for you unless you know about the universal life insurance policy and its definitions as they apply to the policy.
Universal life insurance combines features of the two basic types of life insurance: term life insurance and whole life insurance. This insurance policy provides the whole life insurance’ cash value and the term life’s protection feature. If you have this policy, you will have flexible premiums and death benefits. You can choose to pay what you want and how often you want to make these payments. The amount on the death benefits is also flexible, because you can decide if you want it increased or lowered according to your needs.
Another benefit of this policy is that if in case you need money, you can borrow from it or surrender it in exchange of the cash value. You can do this anytime, since your policy is like a savings account that you can easily access. Aside from this, the source of cash from this policy is usually tax-free or tax-deferred, and the loved ones that you leave will not have to worry about tax, since the death benefits on this policy are free of state and federal taxes.
Getting a universal life insurance can certainly give you numerous benefits. But before you get one, make sure that you understand the universal life insurance policy definitions. If you really want to look further into the details of this policy, you might consult an insurance agent, so you will know if this is the right policy for you.
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.
Article Source: http://EzineArticles.com/?expert=Kevin_Stith
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Variable Universal Life Insurance
By Kevin Stith
Are you looking for a life insurance policy that is permanent but with flexible premiums and options? If you are searching for this type of policy, then variable universal life insurance might just be the right policy for you.
A variable life insurance policy combines features of universal life insurance with several investment options, so you will be able to claim a larger amount for a death settlement than what you can receive from an ordinary policy. This is called variable universal life insurance, because the premiums and investments in this type of policy are not fixed. These are variables because both depend on the present market conditions.
Getting a variable life insurance policy has advantages over other types of policies. If you compare this to universal life insurance, you will be able to see that on the latter, you cannot control your invested cash value. But if you combine universal and variable, you can switch these investments if you want to get a higher life insurance settlement. You can do this two or three times a year.
Another advantage of having a variable universal life insurance policy is that you can have a tax shelter. This means that the money you make through investments is tax-free. This amount will only be taxed when you cash in the policy.
Even with these advantages at hand, you must keep in mind that variable universal life insurance is not for everyone. So the best thing for you to do is to consult an insurance agent and have the policy pros and cons explains to you. You must be able to understand not only the advantages of this type but the drawbacks as well.
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 Quote - Advantages and Disadvantages of Universal Life Insurance
By Elizabeth Newberry 
When you think about insurance, two kinds probably come to mind: term insurance and whole insurance. However, before you start looking for quotes, you should also know about the advantages and disadvantages of another kind: universal life insurance. You may find that universal life insurance is the perfect mix of term life and whole life policies.
If you're considering obtaining a quote, you may be a bit surprised to find that there are several advantages to universal policies. First, your universal policy offers permanent protection, unlike a term policy. Second, your universal 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 account or 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 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 policy will earn cash value, nor is there guarantee that it will be in effect when you need it if sufficient premiums have not been paid.
Some people prefer universal because they are sprinkled with the benefits of both term and whole policies. But, before you decide to get a universal quote, make sure you are aware of all the advantages and disadvantages that will come with the universal life insurance policy.
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