|
Florida Universal Life Insurance is a form of Permanent
Life Insurance, with considerable differences between the two. This
form of insurance was created to provide customers with a better understanding
of their policy and relieve them of some of the stricter policy provisions
that come with standard Whole Life
insurance.
With Florida Universal Life, the policyholder can
arrange the benefits to meet his or her needs. The policyholder controls
the how much of the premium is paid toward the insurance and the savings,
and can change the value of the policy as well. There may be a specific
limit to how much the policy can be changed at one time, especially
without providing another health exam. Increases in the death benefit
usually require updated proof of insurability. Universal Life policies
also allow for the changing of the amount and timing of premiums from
time to time, as long as the premium covers the cost of the monthly
maintenance of the policy and maintains a basic benefit amount. However,
if you fail to cover these minimum premiums, the death benefit of your
policy can be greatly reduced.
Universal Life policies usually have a minimum interest rate, but
the rates can fluctuate similarly to a money market account. Therefore
there are no guarantees as far as savings or cash value earnings, but
the growth of these accounts is at a substantially higher rate than
average Whole Life insurance. These policies can sometimes allow any
dividends paid by the insurer to be placed in the cash value account
as well.
Universal Life insurance is the perfect policy for someone who has
yet to purchase a home or start a family, but expects that they will
do so in the future, because of its easy changeability and quick profit
margin. However, because it involves more participation from the policyholder,
consultation is recommended.
Think you're ready to get a quote?
|
