Universal Life Insurance
For some
people, Universal Life Insurance provides the flexibility they want.
Like whole life insurance, a universal life policy builds cash value. However, universal life coverage offers three valuable
features in addition to the cash value build-up:
- Flexible Premiums – Not only can you choose the premium you
want to pay (within the minimum needed to keep the policy in force and the
maximum allowable), you can change the amount at any time.
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- Flexible Death Benefit – Universal life insurance allows
you the flexibility to increase or decrease your life insurance death benefit
within the same policy. As your income and assets increase, your coverage can
be increased to protect them without having to buy another policy to
supplement your original one.
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- Guaranteed Minimum Interest Rate on Cash Value – The
policy's accumulation value comes from the timely payment of premiums over
the life of the contract. The monthly cost of insurance, policy loads and
administration fees are deducted from this account. The remaining cash value
accumulates, tax-deferred, at a current interest rate. The interest rate is
guaranteed not to fall below a minimum rate as described in the policy.
There are a lot of things you can do with Universal
Life Insurance. For instance, there’s a
type of policy called an Indexed Universal Life policy. It has the guaranteed features of life
insurance and the interest rates are credited based on stock indices like the
S&P 500, for instance. If you want
to talk about the details of universal life insurance, the best thing to do is
to contact a licensed insurance advisor. | |
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Contact Your Insurance Advisor
Shonda Prescott
704-557-0289
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