Universal life insurance can be viewed as a marriage between life insurance and investments. You make up one's mind how much death benefit you want, or need, and the frequence of your insurance premium payments. You also make up one's mind how much should be applied to your investing account. The amount of monthly spending can change as long as there is a sufficient amount to take care of the death benefit plus administrative costs.

In other words you state to the insurance company, for example, "I have got $200.00 per calendar month that I desire to set in this policy, I desire $250,000 of life insurance and the remainder of my monthly payment should travel into investment. The insurance company will come up back with a quote for your examination and approval.

You can look at it this way, you get all the benefits of a whole life insurance policy for a lower premium. If the investings of the life insurance company execute well you will be ahead of the game.

A universal life insurance policy offers ample guarantees. The policy incorporates a guaranteed minimum interest rate as well as guaranteed charges. There is usually a minimum guaranteed interest rate of about 4%. The policy is also guaranteed not to oversight as long as the insurance premiums are paid.

This is a great policy to utilize as the foundation of your life insurance portfolio, especially for immature people. Anyone who desires to have got some kind of life insurance and also needs to put some money will also happen this type of policy helpful.

In some cases the insurance company may not execute as anticipated. If this should travel on an increased insurance premium may be required by the life insurance company to keep the death benefit.

Federal income tax is deferred on your universal life insurance policy interest.

For further information go to Universal Life Insurance