Universal Life Insurance Policy Definitions

A universal life insurance is a financial resource that provides money for your family in the event that you die. The money that is received by your family will come as a big help, since it will cover funeral costs, childcare, housing and other expenses that are difficult to compensate for without this type of insurance.

But with the many insurance companies and agents in the market today, it is difficult to know which universal life insurance policy is the best for you unless you know about the universal life insurance policy and its definitions as they apply to the policy.
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Universal life insurance combines features of the two basic types of life insurance: term life insurance and whole life insurance. This insurance policy provides the whole life insurance' cash value and the term life's protection feature. If you have this policy, you will have flexible premiums and death benefits. You can choose to pay what you want and how often you want to make these payments. The amount on the death benefits is also flexible, because you can decide if you want it increased or lowered according to your needs.

Another benefit of this policy is that if in case you need money, you can borrow from it or surrender it in exchange of the cash value. You can do this anytime, since your policy is like a savings account that you can easily access. Aside from this, the source of cash from this policy is usually tax-free or tax-deferred, and the loved ones that you leave will not have to worry about tax, since the death benefits on this policy are free of state and federal taxes.
Tip! Waiver of Premium – This feature pays the premium on the life insurance if the insured becomes disabled because of injury or illness.

Getting a universal life insurance can certainly give you numerous benefits. But before you get one, make sure that you understand the universal life insurance policy definitions. If you really want to look further into the details of this policy, you might consult an insurance agent, so you will know if this is the right policy for you.

Universal Life Insurance provides detailed information on Universal Life Insurance, Universal Life Insurance Quotes, Variable Universal Life Insurance, Universal Life Insurance Policy Definitions and more. Universal Life Insurance is affiliated with Free Life Insurance Leads.

Life Insurance Rate Decreases Are Making It Easier For Young Families To Get Coverage

Life insurance premium rates are continuing to decrease, in part because death rates have been coming down, according to the Insurance Information Institute. This is good news for young families who need life insurance protection but have a tight budget. It also gives people who already have life insurance the opportunity to shop around for a lower premium. Here are some ways to make sure you're getting the right life insurance for your situation.

If you currently don't have life insurance, you'll need to estimate how much coverage you'll need. Some financial planners have thrown around formulas such as multiply your salary by 10 times for your minimum policy face amount. However, this can be too generic for your situation. You need to take into consideration your own debt load, how many people truly depend on you for financial support and what other benefits you have available.
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One way to help you figure out a good starting figure for coverage is to:

1. Estimate what your family's monthly expenses would be.

2. Add in your mortgage balance and other debts.

3. Add in estimated future expenses such as funeral expenses and college tuition.

Then, subtract out Social Security benefits, other life policies, your spouse's income, and retirement plan benefits. The difference should be your minimum coverage to provide an adequate replacement of your income, if something happens to you.

Once you know how much coverage you want, make sure to get at least three different quotes. Rates can vary quite a bit between life insurance companies so you want to feel confident that you're getting the best value.

If you currently have a life insurance policy and want to see if you can get a lower premium, here are a couple of things to remember before you get your quotes.
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First, since you took out your policy your coverage needs may have changed. You may need more -- or less -- coverage if your debt load has changed, your assets have grown or you've added dependents.

Second, depending upon how long ago you took out your current policy your rate may have changed because you are older. Also, if your health is worse you may pay a higher rate. Of course the opposite can be true, especially if you used to be a smoker and have quit for at least 12 months. Be sure to get several quotes.
Tip! Dividends: Dividends are not guaranteed with whole life insurance but there is a chance of earning dividends.

Before you cancel your current policy however, make sure you have a new one in place and understand all of the provisions that go with it.

Scott Lunt is a freelance writer with over 15 years experience writing insurance-related articles. You can compare life insurance quotes and find more tips on saving on car, home, life, health and long-term care insurance at LowerYourInsurance.com