Life insurance is a bit of a touchy subject for many. After all, the point of the whole thing is to provide some sort of financial coverage to help you pay your final expenses and take care of your loved ones too.
The people who pursue one form of life insurance or another are those who want take care of household expenses, debts, and other burdens in the event they die. There a number of types of life insurance that can be purchased today. They include term life, whole life, and universal life.
Of course, with each type there are certain advantages and disadvantages. Life insurance is something that can be tailored to fit your particular needs and circumstances. One of the aspects that will be discussed here is the concept of permanent life insurance rates. If you want to know more then you need to learn something about universal life insurance.
In fact, universal life is known as a permanent life insurance option. The biggest advantage of this form of coverage is that it has a remarkable level of flexibility when it comes to how payments are paid, the costs of the premiums over time, and the short-term interest rates can be reset each year. Additionally, the rates are normally much lower than other types.
Permanent Structure
The rates for universal life insurance policies are guaranteed to never increase no matter how much the rates paid by insurance companies fluctuate. The structure of the typical universal life policy is arranged based on the idea of permanent coverage. Features of both universal and term-life are included to broaden the range of coverage. This means that not only do you get permanent rates but you also can benefit from investing premiums in order to get cash value. This cash value benefit can be useful for several different reasons. One of the least common ways is that it can be used to provide a loan if you ever need it in the future. This last aspect is a great way to plan for your family’s well being in the event of your death.
The policy rates also function as a form of investment for the policyholder since a portion of the premium you pay goes towards the costs of the insurance while other pats go to a separate account that accrues interest in a tax-deferred structure. This money will be paid out to a beneficiary when you, the policyholder pass away.
Permanent Insurance Options
It should be noted that universal life insurance policy rates come with three payment options. They are fixed premium, flexible premium, and single premium. The first option requires the rate remain the same for a set period of time and you only pay the premium once. Other factors deal with the behavior of the cash value account and how they determine whether you pay additional premiums. The second, the flexible premium, let the policyholder choose when to pay a premium as well as how much. The last option, the single premium, lets you pay a lump sum that deducts the monthly payment costs from the cash value on the account. As you learn more about universal life insurance rates, you’ll find out how a permanent rate can be a good thing.
Deciding which plans works best for you
As we mentioned early, each type of policy has different advantages and disadvantages. There is no “one-size-fits-all” plan that works for every applicant. Take the time to weigh each plan and see which ones fits your needs the best. Our agents can help you decide based on your wishes and what matters most to you
Why you need life insurance
If you’re like the majority of Americans, you would leave behind a mountain of debt if you were to pass away. When you die, what’s going to happen to that debt? They will be passed on to your family.
Every year there are thousands and thousands of families that go through the pain of losing someone close to them, and then on top of that, they find themselves struggling to pay for mortgage payments, car loans, and credit card bills.
How much life insurance do you need?
Based on what you choose to buy (think term or permanent life), you need to make sure that you get a large enough policy. Not having enough coverage can leave your family struggling to pay for final expenses. So, how do you know if you have enough life insurance or if you should purchase more? There are a few questions that you can ask yourself.
How much debt do I have today? As we mentioned earlier, one of the main goals of life insurance is to help your family pay off any unpaid expenses that would be given to them if you passed away. It will also help them pay for funeral expenses that can be as much as $10,000. Sit down and look at all of the debt and unpaid expenses that you have. Make sure that your life insurance policy is large enough to pay all of those off.
Does your spouse and children use your salary to pay for basic expenses? Would they be able to survive off other incomes sources without yours? If you have several people that rely on your income, then life insurance can give them the funds they need to find a way to replace that lose income.
Getting the lowest rates possible
Regardless of the type of policy, you’ll want to get the lowest rates possible for the best coverage. There are millions of people that are buying more than they need. The number one method to saving is using a broker or independent agent who can serve quotes from lots of companies.
If you have any health complications or pre-existing conditions, it’s important that you find an insurance company or agent that has experience working with high-risk applicants.
Some companies look more favorably at applicants with conditions like diabetes or cardiovascular complications, and if you have any health problems, it’s vital that you find one of these companies to get the best rates available.
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