Know The Advantages And Disadvantages Of Universal Insurance Policy

No explanation or introduction is required to justify the need of a life insurance policy in one’s

life. We all know that having a life insurance policy is very important as it gives complete or

partial financial support to the medical or accident expenses. As there are no assurance of

circumstances in life and ill faith can befall any time on anyone. Hence, it is always a wise man

conduct to stay prepared for such moments with a life insurance policy.

We commonly know about two types of insurance policies : term insurance and whole

insurance. But there is one more type known as universal life insurance. If you are thinking of

getting a new insurance plan for yourself then before you start checking different insurance

quotes, have a look at the advantages of universal life insurance, which is basically a mix of

term life and whole life policies.

The universal insurance policy provides a permanent protection, whereas term policies don’t offer that.

This kind of policy offers cash value even for accounts for with low risk.

These policies are tax-deferred, hence the policy holder doesn’t require to pay tax for the cash the policy accumulates.

The cash value account of the policy also receives extra money from interest based on the market rates.

The policy holder gets the flexibility of withdrawing or borrowing money from his/her universal account.

This kind of policy is good in terms of premium flexibilities and face amount

In light of the aforementioned advantages, universal insurance policy seems to be a good

choice, it is indeed. But like other policies, it is also has certain setbacks which are good for you

to be aware of.

It doesn’t offer account flexibility, that means the policy holder won’t be able to move or invest

his money from one account to different accounts. The prime setback is that the policy doesn’t

give any guarantee that it will earn cash value. However, majority of policy holder receives cash

benefits. But, these are preferred upon because they offer a combined benefit of both term

and whole policies. So, while collecting insurance quotes, don’t miss out Universal Insurance

Policies. Get a few quotes of universal policies as well, compare it with other policies available;

weigh its advantages and disadvantages to select the best insurance policy that suits your

budget.

For more information : http://www.beamalifeinsurance.com/