For ages, life cover has been looked upon as a decent venture for securing the future of your precious ones. With time there have been multiple changes and new additions in the domain owing to its immense popularity and acceptance. Today, there are an array of options available in life, term, and whole insurance policies with different features added to make your plan more definite and convenient. One such option is universal life cover. In this article, we will be discussing it more to give you a broad idea of what it entails.
What Is Universal Life Insurance?
Universal Life Cover is so-called due to its feature of giving everlasting life coverage. Get universal life insurance quotes here.
It is different from whole or term life insurance policy in a way that it allows payment of within your means and flexible premiums than the other two. Term Life policy serves coverage only for a certain span of time. It may range anywhere between 10 or 20 years while Whole Life provides cover for the policy holder’s life. Similar to the latter, a Universal life policy also serve lasting coverage but without any assurance of returning the cash value. Just like a whole life policy, a universal life policy also provides a death benefit.
What Does It Involve?
If you are looking forward to investing in this insurance, you can expect two things from the death benefit and cash value. It’s similar to traditional whole life insurance in this aspect. So, the amount you will be paying each month as your premium will be divided into both. However, unlike whole life insurance, you can increase or decrease your premium to modify your death benefit. Further, you can expect the interest of your cash value conferring to the market tendencies.
What Are Its Types?
The insurance is divided into the subsequent categories:
- Indexed: In this, you can expect a rise in the cash value with a market index. Any profit or loss will be covered.
- Variable: You can fix your cash value to either gain or loss by investing them in mutual funds or stocks.
- Guaranteed: Premiums will remain stable.
Different corporations and distinct policies mention their coverage span in the contract. Get universal life insurance quotes here. In the case of universal life insurance also, you can expect the maturity date spanning anywhere between 85 to 105 years. If the person sustains a healthy living until the end of their policy, they can expect around-off figures equal to their cash value. If the person bearing the policy doesn’t outlive it, his/her beneficiaries or nominees will receive the death benefit.
This may vary from one to another company. In some cases, you will be asked to provide a medical check-up record including medical history, check-up, certain questions related to lifestyle and health, etc. In any case, if you lie or hide any important information regarding your health, it can impact your cover plan in the future.
Universal Life Insurance is worthwhile speculation if you are someone interested in gaining an interest amount upon your cash value. The plan will permit you to be further flexible while managing premiums and investments.