When reviewing life insurance options, one popular type of policy is a universal life insurance policy. Universal life insurance is a policy that maintains a value as you pay premiums on a monthly basis. The policies have the following benefits and features:
- Monthly premiums paid over time increase the account value. The account value will determine what benefit can be paid at a specific time. This allows some flexibility in determining the amount of insurance you need and premiums you can pay.
The account value earns interest, subject to the terms of the policy. Some policies have a minimum amount of interest written in that will be paid.
From each premium payment, an expense charge is deducted. The remaining balance will increase the account value.
Premiums are variable, meaning they may be increased or decreased at any given time.
Policy holders have the ability to take withdrawals and loans against the balance of the account value. Fees may apply.
There are tax benefits as well, as the death benefits are typically tax-free.
When completing an application for insurance, you will need to provide the insurance company with some basic information that will allow them to accurately rate you as a risk. The questions you will likely be asked concern the following areas, among others:
- Your vitals -- including, age, gender, address, occupation and marital status.
Tobacco use. Some carriers will allow you to reprice your policy if you are able to quit smoking for a year or longer.
The specifics on the policy, including policy term, premium desired and policy limits needed.
Beneficiary information. In the event of a death, who is to receive the benefit from the policy?
With a universal life insurance policy, you can increase your premiums over time, allowing you a higher pay out in the event of a death. That makes the policy appealing to many people who expect their income to increase over time, as the policy flexibility allows you to keep the death benefits in line with your earnings.
Now that you have prepared yourself to get a quote, you need to locate an insurance company that writes universal live policies to get a quote.
- Visit a local agent. Contact the local agent and set up an appointment to discuss your life insurance needs. When making your appointment, take the time to explain to the agent what type of policy you are looking for so they can prepare appropriately for the appointment.
Most insurance carriers will take your life insurance application over the phone. Check in the yellow pages or local advertisements for the phone number of an insurance company that can quote you life insurance.
Get a quote online. As more and more people prefer to shop from home, the insurance industry is looking to make themselves available 24 hours a day, 7 days a week through the internet.
You should never have to pay for an insurance quote; most companies offer them free of charge. There is no downside to getting multiple quotes, making sure that you get the best deal that will protect you and your family.