If you speak to an insurance professional, he or she will tell you that a universal life policy is an economical option for life insurance protection. This fact in and of itself will draw interest from insurance prospects.
What Is a Universal Life Plan?
Definitively, a policy that features universal life insurance in Houston, TX is a type of permanent insurance plan that offers life insurance protection and flexible premium payments. It also includes a cash-value accumulation of savings, similar to what is featured in a whole life insurance plan.
Built-in Savings
When a premium is paid for universal life insurance, a part of the remittance is used to pay for the life insurance expense with the rest of the payment directed to the cash value of the insurance. This cash value is similar to a built-in savings plan.
How the Cash Value Is Paid
The cash value for a universal life insurance policy may either be credited in a stock account or earn a fixed rate of interest. Because of the inclusion of a cash value, the owner of the policy can miss payments if necessary.
Types of Plans
When you make a choice of universal life insurance, you can choose from one of various types. These types include indexed policies, guaranteed universal life policies, or variable universal life plans. Each policy has features that are designed to accommodate a customer’s savings needs and preferences.
For example, a guaranteed plan is designed to last for the owner’s life. The rates will never increase if the premiums are regularly paid and the death benefits always stays in force. Again, this type of plan lasts for the owner’s whole life instead of a fixed term such as 20 or 30 years. Therefore, the plan is priced to a specific age such as 90, 100, or even 110 years old.
Where to Learn More About Universal Life Plans?
Find out more about your options for this type of insurance by contacting the Insurance Offices Texas. The company can be contacted any time at 800-419-3506. You can pay a visit to Facebook for more updates!
