Universal Life Insurance Tampa Florida FL
Reader’s Question:
Our eldest son is considering the purchase of a permanent life insurance in Tampa Florida FL. Somebody from a local insurer he called up over the phone has recommended he look into a Universal Life Policy. Is this some sort of new insurance policy which just emerged in the market? I have a whole life policy and have been happy with the results, so shall I have him try the other one?
Justin
Tampa, FL
Glad to hear that your whole life policy has lived up to expectations to suit your needs. Actually, universal life insurance is an offshoot of whole life insurance policy. You and your son should get together with your agent in Tampa, FL and get all the details of a universal life insurance policy for you to know the pros and cons.
Flexibility is the key to universal life insurance policy which, unlike whole life policies, allows for the increase or decrease of the death benefit. The same will be true of the premium amount for this type of insurance. Your son, as the policy owner is responsible for maintaining the cash value of the universal policy. On the other hand, with whole life the premium is fixed at inception. This is not really the case with universal life policies. The policy holder has some flexibility with the premium payments in Tampa Florida FL.
The cash value of universal life insurance policy will be linked to the policy’s interest rate. This has potential for greater growth as compared to the whole life insurance policy, whose cash value is determined by the performance of the carrier’s operations.
Universal life has many tax advantages also which can be something you might take a look at. The premiums can be greater than the cost of insurance at the onset and the surplus yields tax-deferred cash value. Remember the premiums were paid with after-tax income and usually too, the growth is not taxable. This will also apply to any loans against a universal life insurance policy from your local provider in Tampa Florida FL.
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