Can A Policyowner Change The Universal Life Cost Of Insurance Rates

Is universal life insurance a good product? Why or why not?

Thanks for the A2A.Depends on your situation, but it is not a product I recommend often.If you are looking for insurance to protect your family from risk when you have kids and debt, there are better ways to do it.If you are looking for a permanent product, there are lots out there that don’t have high fees and also don’t have investment risk attached to the savings component.But if you are looking to tax shelter some funds into an insurance plan, and flexibility is critical, then maybe its your answer. But make sure you understand it in detail, including options and costs.I would strongly advise you sit down with an experienced broker (better yet, two) and discuss your needs and budget and future cash flow. Universal life plans, in my opinion, are sold much more frequently than they should be, and in those case are almost always a bad fit for the client’s needs.So be careful. If it sounds too good to be true, it likely is.

Can someone define Universal Life Insurance in simple words?

Somewhat Simple: Universal Life Insurance can be a Permanent Life Insurance product that resembles a blend of Term and Whole Life Insurance. Typically, the Insured assumes the risk of the policy's maturity in exchange for flexible premium payments and death benefit.OK, Simpler: Universal Life Insurance allows the purchaser (insured) to decide how much to pay for an amount of life insurance (that they can change) while assuming the risk that the policy will be in-force sometime in the future.-----------------------------------------------------------------------------------IT'S LIKE A LIFE INSURANCE PRODUCT IN A TAX DEFERRED FUNNEL:CREDITED: The insured puts money in the funnel in the form of Premium PaymentsCREDITED: As the money accumulates, Interest is earned in the Tax Deferred Accumulation Account.DEBITED: Each Month a Cost of Life Insurance is Deducted from the AccountDEBITED: Each Month Administrative Costs and Policy Fees are DeductedRESULT: As long as your Premium Payments plus Interest are adequate to cover the cost of the Life Insurance Premium and Policy Fees, the policy stays in force.Many different variations of Universal Life Insurance are available. Some policies offer a guaranteed death benefit to maturity IF you pay a minimum required premium. That premium may or may not result in cash available to the insured in the later years of the contract.Important note: Most Universal Life Policies have an increasing cost of life insurance (like term insurance). Therefore, it is very important to fund the policy adequately in the earlier years of the contract.Universal life is a very flexible product. Sometimes, technically referred to as Flexible Premium Adjustable Life Insurance.It would behoove any purchaser of this product to understand the risks they are assuming by researching the guarantees provided with the specific contract for which they have qualified.For a more information check out:Investopedia .comInvesting Answers .comForbes .com (not so complimentary regarding this product)Great Question. Little longer answer than you may have wanted! Best Regards.

What are the types of life insurance coverage available?

There are primarily three types of life insurance policies that you must know.1) Term Insurance:Term life insurance is the best known form of life insurance policy  which protects the person insured for a specified period of time. In  this policy, the policyholder’s family is paid fixed sum of amount in  the event of the insured dies within the specified period of time. The  period typically varies from 10-30 years depending on the policy the  insured selected. The main advantage of term insurance policy is the low  priced premiums in the life insurance category and also they do not  have any additional charges.2) Permanent Life insurance or Whole Life Insurance:Permanent life insurance policy offers the policy holder the coverage  for the whole life. Under this life insurance policy, the policyholder  pays premium regularly until death, upon which the dependent is paid  lump sum amount. The policy expires only when the insured dies. The main  advantage of this policy is validity is not defined and hence the  insured gets coverage for the lifetime.3) Universal Life Insurance:Universal life insurance is a type of life insurance which provides  flexible benefits combining low cost life insurance protection along  with a saving element which is invested to buildup cash value. It was  primarily created to provide more flexibility than permanent life  insurance by offering the policy holder to move money between insurance  and investment component of the policy. This investment component of the  policy enables to increase the value of the death benefit.These three different life insurance policies offers different types  of benefits depending on the requirements of the policy holder. The most  commonly used and affordable of all is Term insurance, whereas  Permanent and universal life insurance policies offers flexibility. It  is always recommended to seek advise of a Financial Advisor before you  buy any insurance policy Source: Types of Life Insurance - Health Auto Car Insurance