Life Insurance Lead Coral Springs Florida FL
Reader’s Question:
I need to buy my life insurance here in Coral Springs, FL. Will it be cost effective to get universal life insurance policy?
Lou
Coral Springs, FL
Universal life policy is a merge a term life insurance policy with a tax-deferred interest accruing savings account.
One benefit of a universal life insurance policy is that you get to accumulate tax deferred savings. You may also not need to pay premiums throughout the entire policy’s duration. If money will be required to pay for the death benefit and other associated costs in the savings fraction of the policy, eventually premiums may not be necessary to keep the policy in effect.
Universal life policy is an investment medium and life insurance policy at the same time. Those people who would find great benefits from it would be those needing life insurance into their 70’s. This would accrue savings portion into an investment. Most people will not require life insurance that late in their lives. If this is the case, it will be more favorable to acquire a term life insurance policy and prepare a suitable retirement investment savings account such as an annuity or a 401K.
If you think that universal life insurance policy is the right policy for you, there would be some point that you need to remember. To start with, ensure that you plan to have the policy for a long time given that you will need to have the policy in effect for at least fifteen years to qualify for any return from the policy. In addition to that, you should have a well-informed insurance agent in Coral Springs, FL who can help you review your other alternatives such as whole life and term insurance.
Tags: term life insurance, universal life insurance
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