Universal life insurance is also referred to as ‘flexible premium adjustable life insurance’. This policy protects the well being of your family by having both a death benefit and a good savings plan. Since the term used is ‘universal’ the policy covers almost all people and does not have a fixed term like a term life insurance does. It continues from the time a person applies for it until his or her death, as long as the holder pays his premiums regularly without defaulting.

To be frank, a cash value policy such as a universal life insurance can offer investment opportunity only because such a policy is priced at a higher rate. The premium under such policy is divided into three parts. One goes to meet the administrative cost, another to develop the death benefit and the third part is deposited in a cash value account. This amount is then invested in different sectors and interest is credited to it; sometimes such interest is determined by the insurer and sometimes it is pegged to different financial indexes.

Since the premiums are flexible, you can monitor your payments and add more amount at later stages to increase the coverage your family will receive in the future. The main disadvantage of universal life insurance is that you need to pay premiums throughout your life, which can become difficult once you retire. The returns on investment will vary depending on where the insurance company invests your money. The cost of terminating universal life insurance early can be very high.

In fact, many people prefer to go with a pure insurance policy like term life insurance and keep the remaining savings to invest in savings plans of your choice. They feel safer having control over their investments rather than leaving it to a third party to invest in schemes of their choice. Before deciding on opting for universal life insurance, request a life insurance quote on line from several reputed insurance companies, calculate costs and then go for it only if you feel you can afford it and that it will protect your family’s future.

The term life insurance is a popular choice today because of its affordable rates and large benefit. This is possible because term life being a pure death benefit, no part of the premium needs to be diverted to any other account, but can be used entirely to develop the face value of the policy. Such a policy is sold for a fixed term and the death benefit is payable only if the insured dies within that term. People generally buy such a policy to cover incidence such as dependent care, children’s collage education, mortgage and loan payments, funeral cost etc.

Term life policies too can be of various types. Before you make any final choice, you should always go online to receive instant term life insurance quotes and then decide. However, know that, among all, the level term life insurance policies are the most popular. These policies are sold for a specific period and the premium as well as the face value remains fixed for the whole tenure. As opposed to it is the annual renewable term; these policies are sold for a year only, but have renewable clause incorporated in them. Other than these, some other variations are:

In level term life insurance, the death benefit amount remains the same throughout the policy period. Therefore, the premium amounts that are paid will also remain the same. This makes it easy for the policyholder to calculate exactly how much he needs to pay for the whole duration and work out easily whether he can afford it.

You must realize that decreasing term life does not involve any decrease of the premium amount; it is only the death benefit, which keeps decreasing over the years. However, because of that, these policies are very affordably priced and you can buy one to protect your debts and mortgages. The increasing term life has its face value increasing over time; many prefer them because our insurable interests do increase with time. The convertible policies on the other hand allow you to convert your term life into a whole life without having to provide any proof of insurability while ROP policies return the premiums if you outlive the term.

The life insurance no exam policies on the other hand are level term life policies, but with a difference. You can also call them instant term life insurance because they provide the coverage almost within twenty-four hours. Such a policy exempts you from taking any medical test and have very short underwriting period. However, these policies are rather expensive and so think twice before taking them up.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance and no medical term life insurance, visit his site today.