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Universal Life Insurance

What is the difference between universal life insurance and permanent life insurance? Nothing, they are essentially the same thing with different names.

The main difference between universal life insurance and whole life insurance policies is universal life insurance allows policy holders a bit of flexiblity to change their premium payments and death benefit. The premium payment can be increased or decreased or even skipped. The death enefit can be increase or decreased as well depending on insurability.

Universal life insurance policies may be purchased with one of two different death benefit options. One is a level death benefit and the second is an increasing death benefit. Although premium payments are flexible, a universal life policy will usually have a target premium which is the suggested annual premium payment. The target premium for some companies is sufficient to keep the policy in-force to age 100; however, this is not guaranteed. Universal life insurance policies also accumulate cash values on a tax-deferred basis.

  • surrendered anytime for whatever the cash surrender value is
  • take out a loan by using the cash value of the policy as collateral
  • changed to any reduced death benefit amount that is already paid up
  • to pay insurance premiums for a period of time
  • used to supplement retirement income
  • Universal life insurance policy plans are a lot more valuable because thet plans provide permanent protection and accumulate cash values that can be used for emergencies cases or to meet specific objectives.

    The cash values of universal life insurance policies may be affected by a life insurance company financial standing. Some factors that influence a life insurance company's performance are expenses, mortality experience, and investment performance.

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    Related Links

    Types of Life Insurance

    Whole Life Insurance

    Universal Life Insurance

    Variable Life Insurance

    Pacific Care

    Metropolitan Life Insurance Company

    North Western Mutual

    Jan Hancock Life Insurance Company

      
     
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