Investment knowledge is something that consumers have gained more of over the last decade and this can be attributed to the ease at which you can get information. Insurance and investment companies have created a new product for these consumers, which is called Universal Life Insurance. This policy allows you to have a life insurance policy that is permanent, while growing an investment account.
The first step that a client will make is to open a Universal Life Insurance investment account. A deposit will have to be made in the amount of at least the first monthly insurance premium. If you pay more than that, it will be credited to your investment account. Once your investment account grows, you can even use the money in it to pay the premiums. This is a great way to combine investments and life insurance.
There is a great deal of flexibility in a Universal Life Insurance investment account. As far as the life insurance, the amount is set by you and you can move it up or down by simply increasing or decreasing your premiums, and letting the company know about your wants. The investment side of your account can be varied, depending upon the company that you go with. Some offer a guaranteed minimum return on your investment, while others allow you to actually choose your investments, such as bonds or stocks.
The benefits of this type of life insurance are many. The best is that this insurance is permanent until you dont want it to be. If you have the funds in your investment account to pay the premiums, it will stay active. In addition, you can often take a loan against the investment portfolio if you need it. After your death, you can designate how you want the investment proceeds divided to your beneficiaries.
If you have been looking for a permanent life insurance policy that has additional benefits, you want to consider a Universal Life Insurance policy. It will allow you to create an investment account that will help to pay for your insurance, as well as take care of your family in the case of your death.