Universal life insurance is a popular type of life insurance that not only provides life insurance protection but also has a cash value component. Earnings based on a fixed interest rate or the performance of major world indexes are added to the cash value component which, in turn, increases over time. Universal Life Insurance in Houston TX comes in three forms: guaranteed universal life, indexed universal life, and variable universal life.
Guaranteed Universal Life
Guaranteed universal life insurance is similar to term life insurance in that the rates are guaranteed to never increase as long as the premium is paid. However, instead of having a fixed term, the policy is designed to last for the entire life of the policy-holder. The rates are based on ages rather than term periods and will be higher for higher age groups. Despite being more expensive, guaranteed universal life is a good option because it has a high probability of the death benefit being paid out.
Indexed Universal Life
Indexed universal life insurance is also a fixed insurance policy. The returns on the cash value will depend on the performance of a stock index, such as the S&P 500 or the Nasdaq 100. The policyholder can decide the percentages allocated to the indexes. Premiums for indexed universal life policies are generally low since the policyholder bears the risk. The death benefit is permanent and is not subject to income taxes or required to go through probate.
Variable Universal Life
Variable universal life insurance is a type of permanent life insurance in which the policy-holder has the ability to invest the cash value in a variety of separate accounts. This type of policy generally carries more risk, but it can also result in a higher value to the policyholder or beneficiary. In addition, variable life policies have a great deal of flexibility in premiums. There is no endowment age for variable life policies.
Insurance Offices Texas can provide Universal Life Insurance in Houston TX. Universal life insurance policies are offered along with term life and whole life policies. Experienced agents are available to discuss the personal and financial needs of each customer and help to determine the best the policy and coverage level for each individual situation. Browse the website for more information.
