Universal life insurance is a hybrid permanent life policy that was introduced in the late 1980s. Universal life insurance offers the pros and cons of permanent life insurance, such as building cash value with the potential for greater investment returns, yet can be purchased at cheaper rates than whole life insurance. Since universal life insurance was first offered by insurance companies, many different types of universal life insurance policies have been developed, from single, fixed or flexible premiums plans to guaranteed or variable policies, each with its own advantages and disadvantages.
When consumers compare universal life insurance quotes, it is important to understand the features of each universal life policy as well as the rates, coverage, and life insurance company. Enter your zip code now to get a universal life insurance quote and find out if a universal life policy is affordable for your budget.
Guaranteed Universal Life Insurance
There are actually two different types of guaranteed universal life policies, one that guarantees a minimum rate of return on the cash value investment and one that guarantees the policy will not lapse even if the cash value falls to zero due to investment failures. In previous universal life insurance policies, if the cash value of the investment account was zero or less due to investment losses, the policy lapsed and the insured person had to seek new life insurance. Guaranteed universal life insurance with no-lapse riders will not be as cheap as standard universal life insurance quotes without these options.
Variable Universal Life Insurance
With most universal life insurance, the life insurance carrier makes all the investment decisions, but with variable universal life insurance, the policyholder can choose how he or she wants the cash value invested. Policyholders are given a choice of several options, similar to mutual funds and can choose to place all their equity in a single investment or divide the cash value between several investments. Variable universal life insurance is a good choice for individuals with knowledge and experience in investments and can be a great example of how life insurance as an investment can yield strong returns or losses depending on the market’s performance.
Equity Indexed Universal Life Insurance
Introduced 9 years ago, equity indexed universal life insurance is considered by most financial experts to be a good choice for retirement investments. The equity (cash value) investment of the policy is tied to major financial indexes like the Standard & Poor’s or NASDAQ. Investing in a life insurance policy has tax advantages since profits are tax deferred until they are withdrawn for the policy. Consumers will find it wise to compare universal life insurance terms, benchmarks, and past performance as well as universal life insurance quotes since equity indexed policies may vary between different insurance companies.
Other Universal Life Insurance Policies
There are now two death benefit options for universal life insurance. One type of policy pays only the death benefit when the insured dies and the other pays the death benefit plus the accrued cash value in the policy. Those who are using universal life insurance as a retirement investment may wish to choose the second option since the cash value may be substantial in a policy held over the long term. Universal life insurance quotes for the first option will be cheaper and more affordable, but policies that payout both the death benefit and cash value will most likely overcome that deficit and be valuable.
Universal Life Insurance Quotes
MyLifeInsuranceQuotes101 offers helpful articles to educate consumers on the different types of life insurance. We also provide free, instant life insurance quotes from multiple top ranked insurance companies so individuals can compare the rates of different life insurance policies and companies. Consumers should understand the terms and conditions of the universal life policies they purchase, and the beginning of that research starts with requesting universal life insurance quotes.
By getting life insurance quotes online, you are able to review multiple policies and carriers offering universal life insurance instantly, comparing premiums and death benefits to find the best, cheap life insurance for your needs.