Term life insurance > Universal Life Insurance

Universal Life Insurance

by: Gary Tallon

Universal life insurance is just one of several types of life insurance policy available through life companies today. Unlike term life insurance or mortgage (reducing) life insurance, universal life insurance gives your insurance policy a cash-in value, allowing you to withdraw funds accumulated on your universal policy as and when needed.

This flexible approach to life insurance is very popular in the US and offers a real alternative to standard term & mortgage life policies where the policyholder does not normally get to benefit directly from the life insurance funds, unless they are diagnosed as being terminally ill. Universal life insurance also provides policyholders with the ability to accrue interest on their life insurance premiums - something that a standard life insurance policy does not offer.

How universal life insurance works

Universal life insurance works in a similar way to a high interest long-notice deposit account. When an insurance premium payment is sent to the life company the company deposit the funds into an interest account after deducting a nominal expenses charge per deposit. The funds then gain interest, with interest accrued being credited to the account on a monthly basis. Each premium payment made of course increases the fund, while compound interest is earned on the account month upon month. The cost of maintaining the insurance product or products purchased through the universal insurance scheme are also deducted from the universal account on a monthly basis.

Should the insurance policyholder wish to withdraw funds from their universal life policy then they can do so from the cash surrender value of the life policy. Withdrawals are normally controlled / limited to a set number per year. Depending upon the policy provider there may also be caps on the amount of money that the universal life policyholder can withdraw and a stipulation on a minimum amount of funds that should remain in the universal life account.

It should go without saying that withdrawals from a universal life insurance policy will reduce the overall amount of funds available when a lump sum claim is made upon death or terminal illness diagnosis. It is therefore important to manage the universal life account to ensure that there is sufficient coverage for your family and dependants in the event of your death. If you don't have the time to carefully manage a universal life product then you may end up with little to show for your life insurance premiums if and when a lump sum pay out is triggered.

About The Author

Gary Tallon has been writing in the finance industry for over 10 years and is currently working with life insurance http://www.powerinsurance.com for PowerInsurance.com.

Types of Life Insurance

Types of Life Insurance

by: Mike Bell

If you are considering purchasing life insurance, an overview of the available types should prove helpful. This article will briefly discuss the difference between whole and term life insurance, as well as some variations on whole life insurance.

The easiest way to understand the difference between whole life insurance and term life insurance is to look at what is meant by their names. When you purchase whole life insurance, you are covering your "whole" life - as long as you own the policy, it will pay a benefit when you die. What that benefit is depends on the value of the policy at the time of your death, but you own the policy even if you are no longer making payments on it. Whole life also accumulates a cash value on a tax-deferred basis. In addition, whole life can pay dividends throughout the life of the policy.

Term life insurance, on the other hand, is purchased for a certain term, or period....

Types of Life Insurance

Term life insurance > Types of Life Insurance

Term Life Insurance

Term Life Insurance

by: Gary Tallon

Term life insurance is a life insurance product that pays out a cash lump sum upon death of the insurance policyholder or at the point that the insurance policyholder is diagnosed as terminally ill. But, despite it being a low cost term life product - insurance cover can be acquired from as little as ?5-?10 per month - surprisingly few of us have term life insurance in place.

For people with a mortgage and family to support, not having a term life insurance policy exposes them to a large financial risk. This risk becomes apparent when you consider how the mortgage and household bills would be paid if the main income producer were to die or to become terminally ill. The end result could be that loved ones who are left behind find their home is repossessed because they cannot keep up the mortgage repayments.

Some people prepare for such an eventuality by taking out a mortgage life insurance policy. This...

Term Life Insurance

Term life insurance > Term Life Insurance

Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance

Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance

by: Donald Lusan

Mortgage life insurance is one of the most important life insurance policies a person who owns a home can buy. Since the ownership of this home is probably the largest investment for most people it is imperative that your investment be protected in the event of premature death. I want to take some time to discuss alternative plans that can be used to do this.

Mortgage Life Insurance

What really is mortgage life insurance. Mortgage life insurance pays off the balance owed to the bank or mortgage company in case of your premature death. Let us assume you have a $100,000 25 year mortgage on your house. Let us also assume that after 5 years you have a balance owed of $95,000. Incidentally that figure is not as impractical as it sounds. Your principal decreases very slowly in the early years. Back to our discussion; You now believe you should take...

Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance

Term life insurance > Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance

Term Insurance

Term Insurance

by: Gary Tallon

Term insurance is a level term life insurance product that pays out a lump sum when the insurance policyholder dies or becomes terminally ill. It provides peace of mind to the insurance policyholder that loved ones left behind after their death will be financially secure. Term life insurance can be configured to pay off all existing loans - including the mortgage - and leave a cash sum in the bank to support your spouse and children. If you don't want your family to have to cope with financial pressures during their bereavement, or struggle to find the funds to pay for your funeral then term insurance is the life product to have.

Term insurance is different to mortgage insurance

It is important to realise that term insurance is a different life product to mortgage insurance. Term insurance is a long-term insurance product that can be taken out over a lifetime of 50 years. During this time the insurance premium...

Term Insurance

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Insurance And Ethics

Insurance And Ethics

by: Joseph Kenny

Insurance contracts are often seen as a form of gambling. That is because they appear as a type of wager that takes place over the lifetime of the policy. Basically the insurance company is willing to bet that you and your property will not suffer the loss insured against. In exchange for making this bet, and taking on the risk, the receive your premium. If they win the bet, they keep the premium, if they lose, they make the payout. In this sense, they are often compared to a type of long term financial casino.

The difference between your premium amount, and the amount the insurance company will have to pay out if the loss occurs, is simply the odds the insurance company is getting for taking on the bet. It?s just like going to the horse races and betting on a horse that pays out 10 to 1.

This view of insurance has led to a number of people and religious communities disapproving of insurance because...

Insurance And Ethics

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Common Mistakes To Avoid When Purchasing Term Life Insurance

Common Mistakes To Avoid When Purchasing Term Life Insurance

by: Mike Bell

When purchasing term life insurance, there are a number of factors to consider. Consumers should make certain they understand the concept of term life insurance and make purchases accordingly. Here are a few of the most common mistake people make when buying term life insurance policies:

1. Buying a term life insurance policy because it is inexpensive. While the price may be cheap, you must make sure that the policy will meet your life insurance needs.

2. Failing to realize that term life insurance is temporary. A term life insurance policy will only be in effect for a set period of time. After that time expires you will need to renew, and if your health has deteriorated in that time it may be very difficult for you to obtain another policy.

3. Purchasing life insurance from an unknown or unstable insurance company. If the insurance company you choose does...

Common Mistakes To Avoid When Purchasing Term Life Insurance

Term life insurance > Common Mistakes To Avoid When Purchasing Term Life Insurance

Term Life And Whole Life Insurance

Term Life And Whole Life Insurance

by: Ivon T. Hughes

Which type of policy is best for you, term or whole life? The answer depends on several factors, including:

Your Needs. If you need coverage only until your children graduate from college, for example, you might be better off with a term life policy.

Cash-value insurance is better suited for long term needs, such as planning estate taxes and providing lifetime security for your spouse. Some term policies cannot be renewed past age 70 or 80 and can become costly to renew as you approach that age.

The Cost. If term life insurance is more suited to your budget and you want life time coverage, consider a term life policy which can be converted into a whole life policy. Then you can convert the policy whenever your cash flow or needs dictate. You can also purchase a combination of term life and whole life insurance and gradually shift into whole life insurance over time.

Your...

Term Life And Whole Life Insurance

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How To Save Money By Properly Maintaining Your Car

by: Dr. Drew Henry

Did you know that you can substantially save a lot of money simply by doing a quick 10-20 minute checkup on your car each week? In this article, I will give you the information you need properly maintain your car and saving money that would otherwise be spent on expensive repairs.

My first advice to you is that you need to read and understand your Owner?s Manual for each car that you...

How To Save Money By Properly Maintaining Your Car toyo tires Term life insurance Universal Life Insurance

Term life insurance > How To Save Money By Properly Maintaining Your Car

Shopping Throughout Asia: Find Hidden Treasures Among the World's Finest Clothing and Jewelry

by: John Riggin

In between climbing pagodas and snapping pictures of golden goddesses, most travelers to Asia take time to visit the shopping districts. The quality and selection of designer clothing and extravagant items found in shops across Asia will not disappoint those with a penchant for luxury goods. From China to India, great buys are available for those who...

Term life insurance Shopping Throughout Asia: Find Hidden Treasures Among the World's Finest Clothing and Jewelry silk Universal Life Insurance

Term life insurance > Shopping Throughout Asia: Find Hidden Treasures Among the World's Finest Clothing and Jewelry

The Benefits of Reading

by: LeAnn R. Ralph

Did you know that reading can keep your mind active and engaged well into old age?

Several years ago when I was working as a newspaper reporter, I interviewed a woman who was a resident at a local nursing home. She was 100 years old. And she read at least one book per week. Mostly novels. She was bright, intelligent and fun to talk with.

"I love to read. It helps me keep up with what's going on in the world,"...

Term life insurance The Benefits of Reading Universal Life Insurance

Term life insurance > The Benefits of Reading

Term life insurance razr phone Universal Life Insurance

The Pros and Cons of Electrolysis

by: Megan Halloway

Electrolysis is a method by which body hair is removed. It can be performed on any part of the body except the ears and the inside of the nose. Women often have electrolysis done on their bikini area, underarms, tummy, breasts, chin, brows, and upper lip, although hair can also be removed on the toes, arms, forehead, buttocks and legs. Many men also use electrolysis to remove unwanted hair on their eyebrows,...

Term life insurance electrolysis

Term life insurance > The Pros and Cons of Electrolysis