Single Premium Life Insurance
Reader’s Question:
My friend is in the process of buying a life insurance policy. I’m also looking into buying a life insurance too but the problem is that I’m quite unfamiliar with all these insurance policy terms. Can you tell me what Single Premium and Universal Life Insurance are all about? How can I start into getting one?
Melanie
Frankfort, KY
Single Premium Life Insurance
Single Premium Life Insurance is a type of whole life that allows you to pay the entire premium up front. You have all of these funds working from the start to build up a nice cash value which will continue until the policy has been terminated. You will take comfort in knowing that your heirs will be cared for as well as having funds available for you to borrow against or cash in if you should have a financial problem.
With this type of policy the money that you invest will grow tax-deferred, meaning you only pay tax on the earnings if you withdraw or borrow money from the policy. Like any other insurance, the benefit that passes to your heirs will be tax free. A Single Premium Life Insurance Policy is a safe haven for money because it is creditor protected. Since your money is in an insurance policy, a financial disaster such as a bankruptcy or creditor’s claims will not be able to tap into your nest egg.
Universal Life Insurance
Universal life insurance is one type of permanent life insurance that offers low-cost protection and a savings element as well. The savings element, premiums, and even death benefits may be modified depending on what the policyholder wants. Also, universal life insurance makes it possible for policy holders to use the interest they have accumulated in savings to help them pay their premiums.
If you have decided to get universal life insurance, the first important thing that you need to look at is how much coverage your budget can afford. To know this, it’s vital that you get universal life insurance quotes. These insurance quotes will give you information about the policy including not only the rate but the conditions, benefits, and exclusions as well. Get several life insurance quotes from various insurance companies. From those quotes, create a table to compare your quotes. Then, choose the best possible deal that you can get.
A great feature of a Universal Life Insurance policy is that you have the luxury to add more coverage later if you want to. You can start with little coverage and as you can afford it you can add more at a later date that will suit not only your budget but also your needs.
To start looking for insurance quotes now you can run a search for “life insurance quotes” from the Internet. You can also click on an ad on this page or check with your local life insurance agent to help you find good insurance deals in your area.
Category: Reader Questions
