Ann Arbor Michigan Life Insurance Quotes
Term Life Insurance Detroit
Life insurance quotes in Detroit
Term life insurance Grand Rapids
Life Insurance Quotes in Grand Rapids
Term life insurance Warren
Life Insurance Quotes in Warren
Term Life insurance Sterling Heights
Life Insurance Quotes in Sterling Heights
Term life insurance Ann Arbor
Life Insurance Quotes in Ann Arbor
Term Life insurance Lansing
Life Insurance Quotes in Lansing
Ann Arbor Term Life insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired and does not expect a return of Premium dollars if no claims are filed. As an example auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by for example an earthquake or fire. Whether or not these events will occur is uncertain and if the policy holder discontinues coverage because he has sold the insured car or home the insurance company will not refund the term premium. This is purely risk protection. Any discretionary investment funds can be placed in other vehicles mutual funds money market accounts etc. that are likely to generate returns similar to or better than a life insurance policy. Ann Arbor Term Life insurance
Universal Life Insurance
Universal Life (UL), also called "Flexible Premium Adjustable Life Insurance," entered the life insurance market in the early 1980s as a more flexible version of Whole Life Insurance. Like Whole Life, UL features a savings element that grows on a tax-deferred basis. A portion of your premiums are invested by the insurance company in bonds, mortgages and money market funds. The return on the investments is credited to your policy tax-deferred. A guaranteed minimum interest rate applied to the policy (usually around 4%) means that, no matter how the investments perform, the insurance company guarantees a certain minimum return on your money. If the insurance company does well with its investments, the interest rate return on the accumulated cash value will increase. Universal Life allows you to choose from two death benefit options. Option A pays the death benefit out of the policy's cash value; the more cash value you build up means the company is on the hook for less insurance (and therefore costs less). Option B pays the face amount stated in the contract, plus any cash values you accumulated over the years (costs more). Many UL policies today offer a no-lapse guarantee: as long as you pay the minimum designated premium, the policy will stay in force to age 100 (or even to age 120). However, paying the minimum guaranteed premium is rarely sufficient to build up significant cash values.
Pros:
Universal Life gives you the flexibility to adjust the death benefit as your needs change, as well as the flexibility to pay smaller or larger premiums - depending on your financial circumstances. This is often an important feature for families who may have fluctuations in their ability to pay.Cons:
If your premium payments are too small for too long, the policy could lapse, leaving you without insurance protection. Also, if the insurance company does poorly with its investments, the interest return on the cash portion of the policy will decrease (but never below the minimum interest rate guaranteed in the contract). In this case, cash values will probably fall, forcing you to pay more premium in the later years.