2013年08月24日

What is Universal Life Insurance and What Make it a Good Investment to Make?

What is universal life insurance plan? This may not be the best investment vehicle to make but it is a valuable addition to the various investment strategies you may already have. Ideally this can be done immediately after retirement plan was sponsored by your employer and had maximized contributions to your 401k.
One variation of this life plan is the variable universal life plan. This may not be ideal for everybody, but there is a way to know if this would be advisable for you to take. You may have to seek the advice of a professional agent to help evaluate your current financial standing and by doing so would enable you both to devise a viable game plan that will suit your needs and gauge as well the amount of involved risk you may assume. Depending on your current financial standing, the universal life insurance may come with a number of advantages and disadvantages. One primary advantage would be the ability to accrue big amount of cash reserves on a tax-deferred basis, and this can be achieved mostly by investing part of your premium for a number of financial products that are offered by your insurance company and they too are tax-deferred. You can settle your premiums using these funds or you can also choose to take instead loans with respect to the accumulated funds and they too are free of income tax.
You may ask for long you can do this? For as long as your policy is active and that the investments you made are performing in your favor, you would have available funds to borrow without having the need to worry that your death benefit will be adversely affected. You may only encounter issues on a variable universal life plan though if and when the investments you made are not doing well. Think of the stock market cash! It is possible that you would face a situation wherein all of the funds that you have paid before on your policy would be in vain or gone due and it is because of the poor returns made by the investments you made as a part of your policy. Should you find yourself in such dire condition, you may have to pay for your premiums again so you can keep your policy active. However this might render your premiums to increase, too.
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Thus it is of paramount importance to have a good level of understanding of any financial product you want to buy, and see to it as well that it totally fits into your total strategy for your retirement years or for whatever investment goals you may have. It would be a wise move though to meet with a financial adviser and seek his help in this regard, and together you can corroborate a viable plan that will be suitable to your current situation. So what is a universal life plan? It may not be the best plan to get or may not be ideal for everybody, but if you are looking for a good financial investment plan it is going to be a good addition to your overall investment plans and not compromise the death benefits you are bound to receive and make a tax-suspended investment. I would suggest that you do your own homework and start investigating.
posted by provanonsen at 22:35| Comment(0) | 日記 | 更新情報をチェックする

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