Arizona universal life insurance
Universal life insurance is the financial resource that will provide financial support to your family when you pass away. The money can help in the preparation of your burial, pay hospital bills, childcare and school fees for your children or any other expenses that might give your family challenges in case you are no more. Planning for the future is always a better idea so that you don’t leave your family stranded when you are not there to take care of them. The universal life insurance gives you an opportunity to plan for your life and family even beyond your existence.
In Arizona, many insurance companies provide this cover. However, before purchasing the policy make sure you understand how it works. It can be challenging to know the universal life insurance policy to buy unless you have a better understand the plan. The universal life insurance has two types, whole life insurance, and term life insurance. Visit an insurance consultant to help you make the right decision.
What are the characteristics of Arizona universal life insurance?
The universal life insurance policy has unique features that differentiate it from other insurance policies, and they are as follows;
1. Account value
This is the total gross value of all your investment accounts in the policy. It includes after deductions for the current month expenditures and your monthly income. All the costs are added, and you will play a significant role in compensating your family members in the future.
2. Cash surrender value
The cash surrender value your current account value, minus the surrender charges and your existing loans. Surrender costs are based on multiple of the minimum premiums you pay for the policy. Back-end costs are mostly high than the front-end costs.
3. Premiums and contributions
The amount of money you spend to cater for the costs of the insurance policy is referred to as premiums. In many cases, the premiums are designed to be paid on a monthly basis unless you decide to pay for the whole year once. Deposits, on the other hand, are the excess money you pay to the insurance company, they are purely considered as an investment.
4. The benefit options
Under the universal life insurance policy the death benefits are payable in consideration of the following four policies;
Level death benefit; this is the level of coverage during the policy lifetime.
Level death benefits and cumulative gross premiums; here the benefits increase by the amount you pay for each gross deposit.
Level death benefit indexed: the amount of the death benefits increase per annum by the agreed percentage.
Level death benefit plus account value: here the total amount of the death benefit is equal to the initial face amount, and the gross account value. This is the most common choice for many people since the gross account value is free of tax.
5. Premium flexibility
The Arizona universal life insurance offers flexible premium payment options to all the policy buyers. Insurance companies will always reason with you to ensure that you can comfortably afford the policy premiums.
Contact us today for more information on the universal life insurance in Arizona.