Universal Life Insurance Is A Perfect Blende Of Life Insurance And Savings

Life Insurance or life assurance is an agreement between the insured or the policyholder and the insurer or the insurance provider. As per this contract, the insurer agrees to pay a pre-determined sum to the beneficiaries of the insured also called a death benefit. Sometimes, payment can be made due to a critical illness. On his part, the insured agrees to pay a stipulated sum periodically or in a lump sum called premium payments.

Life insurance contracts fall under two main categories:
Temporary
Term Insurance
Level term
Renewable Term
5-30 year term policies
Permanent
Whole life
Universal life
Endowments

It is best to learn about all these various types of policies before requesting a life insurance quote. A quote can be got online at one of the insurance websites or dedicated life insurance quote websites, it can be got from an insurance agent or from a specific insurance company. If you have more than one insurance policy health, accident, auto then ask your insurance provider for a life insurance quote too.

Since you are an existing customer, chances are that they will give you an excellent rate. A term insurance policy can be taken for one year or in multiples of 5 years going up to 30 years. Usually, level term policies are taken for a 5 or 10 year duration when the death benefit remains the same and rates will not increase for the entire period. These policies are used to take care of short term needs and are quite inexpensive. Those who want a no medical exam life insurance can also opt for this time period for this plan is given for a specific coverage amount and for a limited time period.

You will be able to get affordable rates through an insurance for even a no medical exam term insurance, which is otherwise quite expensive. Those who want to save for the future education needs of their children can opt a term insurance. A term insurance is for 15 years and over. If your child is presently 4 years old, a 15 or 20 year term insurance is good to take care of his or her future education needs especially if you are not around any longer. This provides financial security for your spouse who need not worry about the education needs of your kids.

Permanent insurance policies are more expensive than temporary term insurance for they all have an added cash value. Some people who prefer to control their investment portfolios will prefer to get term insurance and invest the extra cash in investment schemes of their own choosing. Others may not mind allowing the insurance companies to invest a portion of their premium amounts in different schemes like stocks, bonds, shares etc. A permanent insurance policy provides the vehicle for people to save money.

Another advantage is that if the need arises, the policyholder can take a cash loan from the accumulated cash savings in their permanent insurance account. This is a great boon for those who may need cash quickly for an emergency operation, repair of their car or home. Of the different types of permanent insurance plans, your chances of getting a high return on investment will be greater if you opt for a variable universal life insurance.

A universal life insurance is a perfect mixture of savings and life insurance. It provides the investor the flexibility of deciding the frequency of premium payments and the amount of death benefit from your policy. You also have control over the proportion of money you want in life insurance and savings account. While there are enough funds to take care of administrative costs and death benefits, the insured has the right to keep altering the monthly outlay.

When your salary levels are high, you can increase premium amounts and reduce them when you need funds for other purposes. Universal insurance offers the benefits of whole life at lower premium levels. Always place your investments with companies that are doing well. It will allow your money to grow. If your funds are placed in high risk investments that will fail, then you may lose your cash as well. So, compare top quality quotes from established websites and get the right plan for the security of your family should be your prime concern.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance term and life insurance quote on line, visit his site today.