| Consider universal life insurance. One of the more | | | | fall into a state of lapse. |
| popular permanent policies is the universal life | | | | Savings Element |
| policy. What is this universal life all about anyway? | | | | You may want to know if it would be better to |
| This policy is permanent insurance which allows | | | | buy term insurance and just put the rest of the |
| for flexibility in premium payments as well as in | | | | money into a savings account. The savings |
| death benefit amounts. Think of this policy as a | | | | portion of your deposit has a guaranteed interest |
| savings account with a life insurance policy | | | | rate. You can deposit money when you want to. |
| attached. | | | | Term life insurance is temporary insurance. You |
| Premium Payments | | | | buy a term policy for a specific number of years. |
| Unlike other types of life policies your premium | | | | If you need life insurance after that period of |
| payments are deposited into a savings account | | | | time you may not be able to qualify for it. |
| which earns interest on your money. Monthly | | | | You may want to use your saving plan for a |
| withdrawals are taken from your account to pay | | | | college fund for your children or possibly to top up |
| administrative costs and life insurance premium | | | | your retirement fund. |
| costs. | | | | The life insurance attached to your plan, though |
| You can enter into a contract with the company | | | | term based, lasts much longer that the better |
| of your choice to deposit money into your | | | | known term policies. You can keep your universal |
| account on a regular basis like you do with any | | | | life insurance policy for the rest of your life. You |
| other policy. Your premiums can be monthly, | | | | can reduce the amount of death benefit any time |
| quarterly, half yearly or annually. On the other | | | | you choose. You can also increase the death |
| hand, you may choose to deposit larger amounts | | | | benefit but, depending on age and physical |
| into your account in a less frequent manner. You | | | | condition you may need to prove that you qualify |
| can make your deposits in your universal life | | | | for the additional coverage. |
| insurance account whenever you feel the need or | | | | Policy Riders |
| desire to do so. | | | | You can add the waiver of premium rider to your |
| It does not matter which way you choose to go. | | | | policy. This provides that if you should become |
| The important thing to keep in mind is that there | | | | disabled for a minimum of 6 months the insurance |
| always needs to be sufficient money in the | | | | company will pay your premiums for you for as |
| account to take care of the premium payments. | | | | long as you are disabled, even if it is for the rest |
| The company includes in your contract a minimal | | | | of your life. |
| guaranteed interest rate on the money in your | | | | You can also add the double indemnity rider to |
| account. | | | | your policy which provides double the death |
| As long as you keep depositing the minimum | | | | benefit if your death occurs accidentally. |
| amount required your universal life policy cannot | | | | |