Page 7 - Life Insurance Today OCTOBER 2017

2. Earn Interest on Cash Value
The cash value of a fixed universal life policy generally
earns interest that's in line with current money market
rates. However, the interest rate will fluctuate along
with the market rate. But some companies offer
protection against that with a minimum performance
guarantee on the policy.

3. Flexibility with Premiums
The policy holder have the ability to lower or even
stop paying premiums on a universal life policy as long
as the cash value of policy holder's can cover the
costs. It helps the policy holders to pay the premium
when they face financial problems.

4. Adjust the Death Benefit
The flexibility of a universal life policy also extends to 1. The timing and amount of premium payments
the death benefit. After a time, the policy holder 2. The net rate of return earned on the interest accounts
increases the amount that's paid out upon his death.
3. The type of cost of insurance and death benefit option
Likewise the insured might choose to reduce the death
selected
benefit, to reduce the cost of the policy.
4. Cash withdrawals if any by the policy holders
Rights available to the policy holders 5. Outstanding balance of any policy loans
under Universal Life Insurance
Conclusion
In general, the policy holder has the following rights in
The right type and amount of insurance coverage helps the
Universal Life Insurance policy:
policy holders to protect finances against many of life's
1. Increase or decrease the premium
uncertainties. The universal life insurance provides a
2. Increase or decrease the sum assured by the company protection against a dreaded life event such as a
3. Lengthen or shorten the guaranteed protection period premature death plus a subsequent drain on savings.
and Universal life insurance is an "unbundled" insurance plan
4. Lengthen or shorten the premium payment period. which includes permanent life insurance and an
investment component.

With these types of policies, the policy holders are able
Factors affecting the values of a Universal
to see what portion of premiums are used to cover the
Life Insurance Policy cost for your insurance coverage and how much remains
Universal life insurance provides the flexibility in premium to be invested in a investment account that's included in
payments along with a choice of how the net premiums the policy. Thus, universal life insurance policy provides
are invested. As a result, the value of the investment insurance coverage and investment/ saving schemes in a
account change depending on the following factors: single policy.

Life Insurance Today October 2017 7

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