| Universal Life Insurance |  |
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| Universal Life Insurance |
Universal Life Insurance, also referred to as Flexible Premium Universal
Life, lets you vary your premium payments and when you will pay the
premiums, with some limits on how flexible you can be. For example, you
may be able to skip a premium payment; or, increase or decrease your
premium payments as long as the total amount of premiums you are paying in
over a period of time is enough to keep the policy in force. As you get
older, however, the minimum premium payments may increase.
Cash surrender value for a Universal Life Insurance policy depends on the
performance of the insurance company's investments. Make sure you
understand whether any benefits or cash surrender values are guaranteed.
Even if there is enough in your account to pay the premiums, continuing to
pay premiums yourself means you build up more cash surrender value.
If you do not pay enough in premiums, you may reach the point where your
insurance coverage will end. To prevent that, you may need to raise your
premium payments or lower your death benefits. The insurance company must
send you an annual report and will also notify you if you are in danger of
losing your policy due to insufficient value.
When you buy Universal Life Insurance, you may be able to change the
amount of the death benefit (also called the "face amount"),
after you buy the insurance. But, to increase the death benefit, you may
need to fill out another health history or have a new medical exam. |
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Source: Massachusetts Department of Insurance
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For information about Lynch Insurance please contact:
William Lynch |
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