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Do You Know What Is Universal Life Insurance

What is universal life insurance? Universal life assurance offers the most flexible of all life assurance plans and has an advantage over whole-of-life cover in that it allows the proponent to determine both his premium and benefits package.

The way universal life assurance works is on a cash value system; this means that money paid by the proponent over and above the amount of the premium is paid back in cash value. If you want to explore regarding the free universal life insurance quotes online, then search the browser.

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If you think universal insurance could appeal to you, have a look here at your options.There are three types of universal life assurance available: single, fixed, or flexible premium.

Single premium

Single premium universal life assurance is paid for by one annual payment. As long as the premiums paid to outweigh the value of cover, the policy remains valid.

Fixed premium

This is a strange option. There's bound to be a reasonable explanation for it. Fixed premium universal insurance is paid by installments for a set period but shorter than the policy is in force. On the expiry of the payment time, the proponent has three options: He can lower the death benefit; he may let the policy expire, or he may make additional or higher policy premium payments.

The flexible premium

This option's a potential trap. On the surface, it looks well, but consider how it works. Flexible premium universal insurance allows the proponent to select how high a premium he'll pay on each due date. If you're a holder of flexible premium universal assurance, you're offered two types of the death benefit.