What are universal life insurance quotes all about?
Universal Life is also called "Flexible Premium Adjustable Life Insurance.” It entered the life insurance market in the early 1980s as a more flexible version of Whole Life Insurance. Like Whole Life, universal life insurance quotes feature a savings element that grows on a tax-deferred basis. A portion of your premiums are invested by the insurance company in bonds, mortgages and money market funds. The return on the investments is credited to your policy tax-deferred. A guaranteed minimum interest rate applied to the policy (usually around 4%) means that, no matter how the investments perform, the insurance company guarantees a certain minimum return on your money.
If the insurance company does well with its investments, the interest rate return on the accumulated cash value will increase. Universal life insurance quotes allow you to choose from two death benefit options. Option A pays the death benefit out of the policy's cash value; the more cash value you build up means the company is on the hook for less insurance. Option B pays the face amount stated in the contract, plus any cash values you accumulated over the years. Many universal life insurance quotes today quote a no-lapse guarantee: as long as you pay the minimum designated premium, the policy will stay in force to age 100.
A Universal life insurance quote is actually for an insurance policy for permanent life insurance. We are talking about a permanent insurance policy. The universal life insurance quote is for life insurance which is designed to last as long as you pay the premiums. Whole life insurance guarantees this lifetime protection. Universal life does not have these guarantees but there are now universal life policies where you can add a feature that guarantees that the insurance will last the rest of your life. You should consult with your personal life insurance consultant for a full explanation of your universal life insurance quote