MONDAY, NOVEMBER 21, 2011
Permanent insurance is different from term insurance in that it’s a bit more binding. For example: term life may have a decreasing premium while permanent insurance generally has a fixed premium. Also, the death benefit on a term insurance policy may increase or decrease and a permanent policy generally has a fixed death benefit…at least until universal life insurance enters the picture. Universal life insurance offers more options than most other permanent policies. Here are a few to discuss with your life insurance agent.
Your universal life policy will spell out a range of premiums that you can pay. The minimum will cover only the cost of your insurance while the maximum will allow you to contribute the most possible toward cash value accumulation.
Flexible Death Benefit
Universal policies are built to accommodate death benefit changes you might want to incorporate in future years. As long as your health permits it, you may be able to increase your death benefit as your needs change. Of course, you should also expect changes to your premium if you do. Death benefits are guaranteed as long as the minimum payments are made, on time.
You also have the option to reduce your death benefit. So if you pay off your debt, get your kids through college or otherwise reduce your need for insurance death benefit proceeds, you can adjust the benefit accordingly, also reducing the necessary premium you must pay.
Universal life insurance policies offer either fixed or variable sub-accounts that you can use to help grow your cash values. You can generally adjust them as needed. You can also change them according to your satisfaction with their performance.
When it comes to Oklahoma City insurance, there is no single type of policy that fits every individual. Give ECI Agency a call and we can discuss all the different options available to you and help determine the coverage to best fit your needs.
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