Many agents offer the universal life insurance as a tax deferred investment plan; but in reality it is nothing but a life insurance policy that also offers an opportunity for capital build up. Many prefer such a policy for the life long protection it offers; but if you are planning to get one for protecting your family against income loss due to the death of the main breadwinner make sure, that your present income can support its higher rates.
There are other polices such as a whole life insurance, which too offer similar benefits. Yet, people prefer a universal life because of its flexible premium payment mode and adjustable death benefits. You see, only a universal life allows the cost of insurance to be debited from the accumulated cash value and so even if you fail to pay your premiums, the coverage will not lapse; it will remain in place as long as it is supported by the cash value. Similarly, the death benefit too can be changed at the policyholder's request; but an increase can take place only if certain condition is met.
Indeed, many people prefer a universal life insurance for that reason only; it hardly ever lapses. Other than that, it also offers few other advantages such as allowing the policyholder to change the death benefit without having to buy fresh coverage. However, certain criteria need to be met if you want to enhance the amount. Yet no other policy will offer you such a benefit. That is why those who can afford its higher charges always opt for it.
Unless you have some idea about the workings of the equity market, you will find such policies little perplexing. Therefore, take the following steps before you buy such a policy:
* Talk to somebody who is knowledgeable about such matters. Meet the experts working in this line and ask for their opinion.
* Other than that you can also talk to the existing policyholders about these polices.
* Also, visit websites of the insurance provider and try to get further information.
* Read magazine and newspaper articles related to such matter.
* Online newsletters can also provide lot of valid information.
However, experts are not the only one who can be consulted on that matter. Many of your acquaintances may have regular dealings in the equity market; they too can be approached for guidance. What is more, one should make independent reading to acquire knowledge in this matter. Articles by experts are regularly being published in newspapers, magazines and online newsletters; read them carefully to enhance your knowledge base.
Let us be more explicit. A term life is sold only for stipulated period such as 10, 15, 20, 25 and 30 years. No benefits can be claimed if the insured outlives that period because the death benefits are payable only on the death of the insured. Moreover, as you have paid only for the insurance protection, there has not been any cash value accretion and so the policy cannot be cashed out either. That is why there is no return in case the insured survives the term.
Remember that, if you opt for a term life, you need to choose the term duration very carefully. Also, know that, if you outlive the term and still need protection, you always have the option to renew the term, albeit at a higher rate. The third point is that to get the benefits, your beneficiary will have to fulfill some legal formalities; such as placing the contact paper as well as the death certificate before the competent authority.
Know that the job of the seguros de vida is to provide insurance coverage to the designated beneficiary of the policy. If your seguros de vida universal is building up assets for you that is because you are paying separately for it. Therefore, that a term life does not pay anything if the insured survives the policy should not be an issue at all; neither should its temporary validity. Even those who buy the coverage under a universal life insurance policy compulsorily surrender it once the vulnerable years are over. How else would they benefit from the cash value accretion?
To sum up we can say that both term and universal life insurance policies have their own pros and cons. If you are looking for protection under seguros de vida, you must weigh all option and then chose what is best for you. However, know that policies are cheaper if you buy them while you are still in your thirties. Therefore, whatever policy you buy it early in life.
There are other polices such as a whole life insurance, which too offer similar benefits. Yet, people prefer a universal life because of its flexible premium payment mode and adjustable death benefits. You see, only a universal life allows the cost of insurance to be debited from the accumulated cash value and so even if you fail to pay your premiums, the coverage will not lapse; it will remain in place as long as it is supported by the cash value. Similarly, the death benefit too can be changed at the policyholder's request; but an increase can take place only if certain condition is met.
Indeed, many people prefer a universal life insurance for that reason only; it hardly ever lapses. Other than that, it also offers few other advantages such as allowing the policyholder to change the death benefit without having to buy fresh coverage. However, certain criteria need to be met if you want to enhance the amount. Yet no other policy will offer you such a benefit. That is why those who can afford its higher charges always opt for it.
Unless you have some idea about the workings of the equity market, you will find such policies little perplexing. Therefore, take the following steps before you buy such a policy:
* Talk to somebody who is knowledgeable about such matters. Meet the experts working in this line and ask for their opinion.
* Other than that you can also talk to the existing policyholders about these polices.
* Also, visit websites of the insurance provider and try to get further information.
* Read magazine and newspaper articles related to such matter.
* Online newsletters can also provide lot of valid information.
However, experts are not the only one who can be consulted on that matter. Many of your acquaintances may have regular dealings in the equity market; they too can be approached for guidance. What is more, one should make independent reading to acquire knowledge in this matter. Articles by experts are regularly being published in newspapers, magazines and online newsletters; read them carefully to enhance your knowledge base.
Let us be more explicit. A term life is sold only for stipulated period such as 10, 15, 20, 25 and 30 years. No benefits can be claimed if the insured outlives that period because the death benefits are payable only on the death of the insured. Moreover, as you have paid only for the insurance protection, there has not been any cash value accretion and so the policy cannot be cashed out either. That is why there is no return in case the insured survives the term.
Remember that, if you opt for a term life, you need to choose the term duration very carefully. Also, know that, if you outlive the term and still need protection, you always have the option to renew the term, albeit at a higher rate. The third point is that to get the benefits, your beneficiary will have to fulfill some legal formalities; such as placing the contact paper as well as the death certificate before the competent authority.
Know that the job of the seguros de vida is to provide insurance coverage to the designated beneficiary of the policy. If your seguros de vida universal is building up assets for you that is because you are paying separately for it. Therefore, that a term life does not pay anything if the insured survives the policy should not be an issue at all; neither should its temporary validity. Even those who buy the coverage under a universal life insurance policy compulsorily surrender it once the vulnerable years are over. How else would they benefit from the cash value accretion?
To sum up we can say that both term and universal life insurance policies have their own pros and cons. If you are looking for protection under seguros de vida, you must weigh all option and then chose what is best for you. However, know that policies are cheaper if you buy them while you are still in your thirties. Therefore, whatever policy you buy it early in life.
About the Author:
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on quotes life insurance and no exam term life insurance rates, visit his site today.