Group Universal Life Insurance

Group universal life insurance is most often offered through an employer, although it may also be available through trade and credit unions, fraternal organizations, colleges and universities, and other associations. As with any group insurance coverage, the premiums are lower because the insurance covers an entire group rather than a single individual. Unlike group term life insurance which may be canceled when a person leaves his or her job, universal life insurance is a permanent policy and individuals may be able to continue paying premiums to maintain the life insurance coverage.

Group Universal Life Insurance Pros and Cons

Universal life insurance is permanent coverage and has an investment component which accrues cash value over time. The premiums are usually flexible with a minimum and maximum payment rather than a fixed premium, like whole or term life insurance. Because the risk to the life insurance company is spread out over a group of employees ranging in health and age, the universal life insurance quotes are much lower than those of other permanent life insurance policies. Group universal life insurance is usually guaranteed and an individual cannot be turned down for chronic illness or advanced age.

On the other hand, group life insurance has a cap on death benefit limits, which may mean an individual has less life insurance than he or she actually needs. The policyholder may not be able to select the death benefit limit, and the death benefit may be based on his or her salary or other criteria set by the employer. Employees usually pay the entire premium for group universal life insurance, despite being purchased at discounted rates.

Alternatively, group term life insurance is often employer subsidized so the employee does not pay the entire premium. Despite the numerous pros and cons, universal life insurance is among the best types of coverage for families who are looking to build wealth and a nest egg for retirement. Universal life insurance quotes can show potential applicants just how affordable and cheap life insurance rates can be, and allow insurance companies to offer rate quotes so consumers can find the best policy available.

Advantages of Permanent Life Insurance

A permanent life insurance policy may be used as a financial instrument and investment because it has a cash value. Policyholders can borrow up to 90% of the cash value in the form of low interest loans. No income tax is charged on profits from life insurance until gains are withdrawn from the policy, so the money can grow without affecting the policyholder’s tax bill. Permanent life insurance policies do not expire and can only be canceled for non-payment of premium so the policy stays in effect throughout the person’s life.

Supplemental Coverage

The advantages of an inexpensive group universal life insurance policy usually outweigh the disadvantages. The biggest disadvantage is the limited coverage offered by employers. Purchasing an affordable term life insurance policy to supplement group universal life insurance is cheaper than buying an individual permanent life insurance policy for the full amount. Since the life insurance can usually be continued after an employee leaves his or her job, universal life insurance rates remain cheap and affordable.

Universal Life Insurance Quotes

Universal life insurance has its own pros and cons, but when compared to term life insurance, universal life policies have the advantage of never expiring or needing to be renewed. Unlike term life insurance, policyholders will never need another medical exam or to apply for coverage again, avoiding an increase in policy rates.

Universal life insurance also has a cash value which is not available in term life policies. Since permanent life insurance policies have higher rates than term life insurance, some people cannot afford their protection, but group universal life insurance offers cheaper rates than individual permanent life insurance policies, making universal life insurance affordable to more people.

After learning about the different policy options and characteristics of universal life insurance, it is important for consumers to get life insurance quotes. By getting universal life insurance quotes, potential applicants can compare life insurance rates, policies, insurance companies, and choose which coverage is the best and most affordable for their needs. By entering your zip code, TheLifeInsuranceQuote.com provides free, instant online quotes from life insurance companies around the country, making it easy and convenient for consumers to find the best, low cost policies.

Just enter your zip code to begin a universal life insurance quote and save money when you buy a policy from one of the best life insurance companies offering cheap rates.