Universal Life Insurance
Universal Life Insurance
Universal life insurance (often shortened to UL) is a type of permanent life insurance, primarily in the United States of America. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy.
- Permanent coverage
- Provides a guaranteed death benefit
- Can provide lifetime coverage
- Has the potential to build cash value
- Offers growth potential based on index performance
- Features a tax-advantaged death benefit
- Includes the ability to access money in your policy
- Offers riders to customize your policy
- Opportunity for stock market indices growth with no downside risk to cash value
- Can be used for supplemental retirement planning
- Can be used for college funding
- Can be used for estate planning to help offset estate taxes
- Can be sheltered in an irrevocable life insurance trust
Benefits of Business Succession Planning with Universal Insurance
Universal Life insurance is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A Universal Life Insurance policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. This rate has a guaranteed minimum but usually is higher than that minimum. Mortality charges and administrative costs are charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any.
Indexed Universal Life Insurance
An indexed universal life insurance policy gives the policy holder the opportunity to allocate cash value amounts to either a fixed account or an equity index account. Indexed policies offer a variety of popular indexes to choose from, such as the S&P 500 and the Nasdaq 100. Read More...
Here are the highlights:
- Permanent death benefit
- Flexible premiums
- Provide liquidity for additional retirement funds
- Provide estate protection
- Opportunity to participate in stock market index (such a S & P 500) returns with no downside risk to cash value
- Most accounts are capped between 12-15% so if index goes up 20% in a year cash value would credit capped amount. However if the index goes down 20% your cash value would be 0%
Reasons to call Legacy Quote about your Universal Life insurance policy.
- You want to upgrade your policy to provide better coverage to your family
- You want or need to save money/ cut back on your expenses
- You're not sure if a Universal Life insurance policy is still the best type of policy for your financial current plan.
Insurance Quotes for Universal Life Insurance
If you want the most competitive insurance quotes on Universal Life insurance policies, Legacy Quote has access to the leading and most competitive Universal Life insurance policies available. Call us so we can prepare the most competitive quotes available.