Universal Life Insurance Quote

Universal life insurance is a type of permanent life insurance which is cheaper than whole life insurance, but instead of a savings account, allows policyholders to invest in stocks and bonds. However, universal life insurance quotes are still more expensive than term life insurance, but offer the advantage of a permanent policy which never has to be renewed or replaced and can be used as an investment to build a nest egg for retirement. When considering the best type of life insurance protection, consumers should compare rate quotes on whole and term life insurance policies with a universal life insurance quote to see if permanent life insurance is right for them.

TheLifeInsuranceQuote.com provides consumers free, instant universal life insurance quotes online so you can find cheap, affordable rates and buy the best policy available. Begin getting universal life insurance quotes now and find affordable life insurance.

Guaranteed Universal Life Insurance

Universal life insurance policies were first written and issued in the late 1980s, but they were risky for policyholders since they lapsed if the cash value of the policy reached zero due to investment failures. Universal life insurance is now guaranteed not to lapse even if the cash value falls below zero. This means that universal life policies have the same permanent protection of whole life insurance, at cheaper prices. A universal life insurance quote comparison with whole life policies will show that universal insurance has much lower rates, and can even offer greater yields and returns on your investment.

Cash Value

Universal life insurance has many pros and cons to consider before buying a policy from a life insurance company. Like whole life insurance, universal life policies have a cash value and can be used in financial or estate planning. The primary difference in the two types of insurance is how the cash value is invested. Universal life insurance invests your premiums in financial instruments like stocks, bonds, commodities, and forex, which have a greater potential for positive returns or losses.

The cash value in whole life insurance is more like a savings account with a guaranteed rate of return. If investments do well, universal policies can pay higher returns than whole life, but remember that there is a risk associated with universal life insurance. Overall, universal life insurance can be a great asset as an investment.

Flexible Premiums

Unlike whole and term life insurance, universal life insurance does not have fixed premiums. Instead, universal life policies offer a minimum and maximum premium payment for flexibility. The more money that is paid into the policy, the more of your premium or money goes into the investment account to build cash value. Policyholders can decide how much to invest each time they make a payment.

If a policyholder is unable to make a payment, universal life insurance allows the money to be taken from the cash value of the policy, offering additional flexibility during times of lower income. As you can see, universal life insurance allows policyholders to adjust premiums to fit your financial needs as a family.

Policy Options

Universal life insurance policies have a number of options including a guaranteed return on investments, and a no lapse guarantee. Other options include payment of the death benefit plus the cash value of the policy to survivors. A universal life insurance quote will reflect higher life insurance rates for policies with these options since they increase the insurance company’s expenses. Basic universal life policies present greater risk to the policyholder but have lower rates. However, as long as you can remember to pay your premiums and can endure fluctuations in the stock market, all the additional riders may not be needed.

A universal life insurance quote can give you price comparisons of the different universal life policies with all the options, providing you quotes on every type of life insurance policy before you make a decision to purchase a particular coverage.

Financial and Estate Planning

Returns on investments in an insurance policy are tax deferred until gains are removed from the policy, which can be an advantage in financial planning. The death benefit from an insurance policy is tax exempt and may be used to cover estate taxes and income taxes so heirs can preserve the estate. Like whole life insurance, universal life insurance can be used to plan for expected expenses like a down payment for a home, college for children or retirement.

When determining how much life insurance coverage you need, insurance experts typically recommend 5 to 10 times your annual pre-tax income, and how much life insurance you buy depends on your debts and liabilities, including mortgage payments, credit cards, living expenses, business or personal loans, medical bills, and tuition. A universal life insurance quote is the first step in planning for the financial future, ensuring you get the lowest life insurance rates and the best policy for your premiums.

Universal Life Insurance Quotes

TheLifeInsuranceQuote.com offers free, instant life insurance quotes for all types of life insurance. Our website also contains helpful life insurance information to assist consumers in choosing the right type of life insurance to meet their personal and financial needs. A universal life insurance quote may show that permanent life insurance is more affordable than many consumers believe.

When potential applicants compare universal life insurance rates through online quotes, they are able to look at universal policies and rates from multiple different universal life insurance companies to find the best, low cost coverage. Enter your zip code to begin a universal life insurance quote and save money when you find cheap rates, policies, and carriers.