Whole life insurance vs universal life insurance, what one should i take? Many people are confused when it comes to picking the right policy for their situation, this article will go over the basics of each policy and hopefully give you a better understanding of how they work.
About The Whole Life Insurance Policy
Your premium payments will never change for the entire length of the policy. This is great news for younger people who can lock in low rates when they are still considered low risk by insurance underwriters. Additionally your death benefit payout will not change for the length of your policy.
Probably the biggest negative associated with this type of insurance is that your insurer does not have to tell you what the administrative cost or mortality costs are. You are also unable to control where and how your money is invested and you insurer does not have to tell you your accounts return rate.
About The Universal Life Insurance Policy
This type of policy has the ability to let you adjust your monthly payment levels and death benefits. This is unlike whole life which locks these in and makes them unchangeable. You also have the ability to deposit any extra money into your universal policy further increasing its value.
However good this may all sound keep in mind that a universal life insurance policy has a value that changes with interest rates. This means if rates go up your value does to. But if rates go down your policy value will decrease.
When it comes to whole life insurance vs universal life insurance one must make up their own mind and decide if they like flexibility and changing values or consistent premiums and coverage but limited access.
Learn more about the Types Of Life Insurance and how each one can protect your family differently by visiting http://www.lifeinsurancestuff.com
