Universal Life Insurance Quote
A universal life insurance quote can help you determine how much coverage and how many additional options you can afford to buy. Your quote is your starting point for comparing plans offered by different insurers. To secure the most versatile, profitable plan, request information from multiple companies on all different types of life insurance.
If you requested a universal life insurance quote, you may be looking for a permanent contract that can be expanded or modified over the years according to your needs. Universal policies are designed to allow flexible premium payments and adjustable death benefits. As your financial situation changes, you can increase or decrease the amount of protection that was included in your original universal life insurance quote.
Your universal life insurance quote should also reflect the money you pay into the plan to benefit from its cash value. As a participating member in your provider's investment option, you'll be able to earn dividends and interest on a percentage of your premiums. The longer you contribute, the more the cash value of your account will grow. Because the economy changes constantly, your quote will not indicate how your insurer's stocks, bonds or money market accounts will perform.
The funds you accrue can serve as a financial supplement for your retirement income, a fund to finance your children's education or a way to enhance the net worth of your estate. The dividends you earn through your insurer generally have tax-deferred or tax-advantaged status. When you borrow against your cash value, you typically pay no tax penalties and can access the money at a very reasonable interest rate. The tax-deferred status of these policies makes them an attractive addition to your retirement strategies or estate plans.
Investing in a Universal Policy
Asking for a universal life insurance quote represents the first step in insuring that your loved ones have a safe, comfortable future. If anything unexpected should happen to you, your survivors will receive death benefits that allow them to maintain their standard of living without the income your currently provide. Your benefits can also cover the costs of your funeral, any outstanding medical bills and the expenses associated with distributing your estate.
The investment component of a policy allows you not only to borrow from your account, but to pay flexible premiums ranging from zero to the maximum amount that is legally allowed. The company that administers your universal life insurance may draw against the dividends and interest you earn on your funds in order to pay your premiums. You can also elect to continue paying on schedule, even if your balance covers your cost of insurance. This ensures that your coverage will not lapse if your provider's investments do not perform as anticipated.
When you talk with an insurer about a universal life insurance quote, ask for clarification on how the profitability of their investments might affect your premiums, dividends and the interest that you earn. Many companies will give you a quote on a rider that guarantees death benefits, even if you don't earn dividends as as expected. If the economy experiences a downturn, your loved ones will still be protected.
Costs of Universal Life Insurance
When you're comparing one insurance quote with another, make sure you're comparing only similar policies. Your premiums for universal life insurance will be higher than the payments you would make for a term life insurance plan. Term plans can be considerably more affordable because they provide basic death benefits only for the length of time that you specify in your contract.
Your universal life insurance quote may include not only the cost of insuring you, but the fees for participating in your insurer's investment program. Your provider might also include the costs of operation, taxes and managing investments in the quote. Because universal plans are highly flexible, rich in features and offer a cash value that earns dividends over time, your payments may be higher with these arrangements.
The universal life insurance quote you receive may be higher than term plans, but will probably be lower than whole life or other permanent plans. Your initial quote may not indicate how much your premiums may change over time. When fluctuations in the stock market affect the dividends you accrue through your insurer, you may have more or less than you need in your cash value account to cover your payments.
When you sit down to evaluate your universal life insurance quote, consider how your financial obligations to the insurer will fit into your budget. If you anticipate that your need for protection might change over the years, you may need to increase your contributions in the future. A flexible, versatile policy will allow you to modify your coverage as needed to ensure the security of your family and your property throughout your lifetime.
