| When you think of buying life insurance, you might | | | | Flexible protection - it provides the buyer the flexibility |
| have term life and whole life insurance come to mind. | | | | to choose the amount of protection he wants, and |
| However, you should consider the mix of these two | | | | allows him to increase or decrease the coverage, but |
| policies before you start looking for life insurance | | | | increased coverage may subject to underwritten |
| quotes. This is universal life insurance. | | | | requirements. |
| Definition | | | | Flexibility of premiums - it offers the buyer the flexibility |
| This policy also called universal life, it is a type of | | | | to pay either lesser or more premium depending on |
| permanent life insurance that has additional features | | | | the circumstances. |
| and advantages; it accumulates cash value through | | | | Guaranteed return of money - if the insurance |
| investment of the premium payments, it is similar in | | | | company made profit on investments, the interest |
| some ways and was developed from whole life | | | | return of the cash value will increase, but no matter |
| insurance. | | | | how bad the investments were, the buyer is |
| The attractive feature of this policy is that it has | | | | guaranteed a certain minimal return on the cash |
| flexibility of premium payments, and has greater | | | | portion. |
| potential for cash value growth; the buyer has the | | | | Tax free death benefits - life insurance proceeds are |
| chance to change the policy to suit his changing needs. | | | | generally income tax free to the beneficiary in most of |
| In another word, this policy allows the buyer to decide | | | | the countries. |
| how much of his premiums will be used for the | | | | This policy also has its disadvantages, such as fewer |
| insurance benefits and how much for investment. If | | | | guarantees than whole life insurance, no investment |
| things go well, he can increase the investment part of | | | | flexibility; the growth in cash value of the policy is |
| the policy if the market is good, so that he can gain | | | | limited. |
| more profit, or if he has financial difficulties, he can use | | | | It is said this policy is illegally sold as an investment, and |
| the accumulated cash value to pay for his premium. | | | | some insurance agents recommended it to their |
| As a result, the buyer benefits protection and at the | | | | customers because they earned more commission on |
| mean time can have his premium invested in the | | | | this product compared to others, buyers are advised |
| market. | | | | to know this product thoroughly before they purchase. |
| Advantages | | | | |