What Are The Benefits and Disadvantages of Universal Life Insurance?
Universal Life Insurance is designed to offer more flexibility than Whole Life, which makes it a good choice for individuals who like the option of changing certain policy aspects over time. Some of the disadvantages and benefits of Universal Life Insurance include: • You are allowed to change the timing and amount of premium payments • You are permitted to make lump sum payments (subject to tax limitations) • Your payments are applied to cash value, which earns an interest rate declared by the insurance company. The cost of the death benefit and administrative costs associated with the policy are deducted, typically monthly, from this cash value. • The interest rate credited to the cash value is subject to change • Most Universal Contracts offer you a choice of death benefit, usually either the death benefit selected, or the death benefit selected plus the accumulated cash value What Are The Disadvantages and Benefits of Variable Universal Life Insurance? Variable Universal Life Insur
