Every type of life insurance policy has both its advantages and its
disadvantages. If there was one common policy that was better for
everyone, it would be the only option to choose from. Universal life
insurance is a kind of whole life insurance
because it can be maintained for the rest of a policy holder's life.
However, it also shares some qualities with term life insurance. All of
its features add up to be either an advantage or a drawback. Both
sides will be explored here.
There are several notable advantages
of universal life insurance. Since it can be held for a lifetime,
there is no need to renew coverage or risk the possibility that your
term will expire and make your payments so far null and void. Similar
to term life insurance, however, universal life insurance allows the
policy holder to change their premiums and adjust the amount they are
covered. This kind of flexibility is a great benefit of universal life
insurance. Also, there is the advantage of a cash value accumulation.
As with other kinds of whole life insurance, this option turns your
premium into an account with money that is available for withdrawal even
before you pass away. These are the great benefits of universal life
insurance.
The disadvantages must be addressed as well. The most profound of these is that whole life insurance
options like universal life insurance are more expensive. Even though
you have flexibility in your amounts, you will get more for your money
in terms of death benefits with term life insurance. Also, while the
cash value feature is present, the amount accumulating will vary based
on the effectiveness of the insurance company's investment decisions.
While you will see a minimum return no matter how badly the investments
go, you may see your cash value drop if you fail to make the high
premium payments. There is also the possibility that you could end up
paying a high commission to a broker, which could cancel out the money
you make in your cash value returns.
Both the advantages and
disadvantages of universal life insurance should be considered if you
think it might be right for you. You need to consider all your options
and do your research rather than simply trusting the advice of a broker,
who could simply be looking to make a commission off your purchase.
However, because of the advantages, universal life insurance could be
perfect for you.
If you would like more information on life insurance
at prices half off the usual cost normally offered in the marketplace,
visit our web site for a discounted rate quote on lifeinsurance.
