Universal and adjustable life policies are basically the same kind of life policy. In general, adjustable life policies are the term given to old universal life policies. These policies were the original universal life policies developed in the late 80’s. The term ‘adjustable’ simply means that you can adjust your premium or cost-of-living adjustment (COLA) and this is done on a monthly basis.
The reason for choosing adjustable versus fixed premium life is simple. With the fixed rate approach you have a set amount of money you will be paying into your policy for the rest of your life. On the other hand, with an adjustable rate policy you have flexibility because you can adjust your premium or COLA.
When comparing the benefits of the two types of policies the difference between the two lies primarily in the type of policy. This can be illustrated by comparing the two premium amounts:
On the one hand, you have a permanent life policy. If you are alive at the time of death you will receive the benefits. The benefit amount can be determined by your age, gender, medical history, and other factors. You can also choose to receive cash instead of receiving a benefit amount.
On the other hand, you have an unsecured variable insurance plan (UVIP). You may be able to purchase some flexibility in premium payments as well, but the variable premiums will be determined by the insurer you select and can range from annual percentage rates to a few percentage points. As with the permanent coverage, the insurance company can adjust the premiums if you become too ill or are not able to make payments for many months.
No matter which option you choose, it is important that you select a life policy that you can afford. When you get married or start a family, you may find yourself in a situation where your income decreases substantially. If this is the case, a fixed life policy may be the best option for your future needs.
The variable policies are ideal for individuals who are in need of some financial protection. Since the amount and benefits are determined on a monthly basis, if your income drops suddenly, your payments will also decrease. As with any type of insurance, you should shop around and be sure to select a policy that you can afford.
No matter which type of fixed or variable life policy you decide to purchase, remember to always check with your insurance company before making any final decisions. They will help you understand your options and find the right life coverage policy that fits your needs.
Remember, life insurance policies are not cheap. You should research different companies and various coverage plans to determine which one best suits your needs and lifestyle. Choosing a good provider will save you money, not to mention providing you with peace of mind.
Many insurers will sell their policies online through their websites. Simply click on the appropriate quote button on the insurance company’s home page and fill out your information. After you have filled out the form, it will be sent to an insurance agent. They will contact you to discuss your needs and the best options for life coverage.
The best way to get free, accurate, and easy online quotes is to use a website that gives you access to a variety of insurance providers. These sites not only give you a variety of quotes but also advice on which policies will best suit your current situation. and financial circumstances.
In many cases, online life insurance quotes will even give you an idea about what the company will require of you in order to get the best rates. This information can help you avoid costly mistakes and be able to choose a policy that will cover your needs and protect your loved ones.