Cheap Universal Life Insurance with Flexible Premium
Reader’s Question:
I understand that universal life insurance would be relatively an expensive type of insurance in Las Vegas, NV. Would there exist cheap universal life insurance even if it has flexible premium? With flexible payment, it just means that the premium fluctuates that is why it can be considered neither cheap nor expensive.
Tanya
Las Vegas, NV
It’s an interesting question because you argue that having a flexible rate, the price cannot be determined if it is high or low compared to others type of life insurance. That seemed to be a wise observation.
Universal life insurance can be a lot more expensive than the basic term life insurance. But when you compare it to other types of permanent life insurance that’s available in Las Vegas, NV, we cannot conclude that it is cheaper than others just because it is simply flexible. Even if the premium is flexible, the flexibility is only based on the foregoing interest rate in the investment side.
Universal life insurance is not only an investment but can also be and insurance. For instance, if you are unhealthy it will always follow that the price of the insurance is higher. This will naturally make your life insurance expensive as the combination of high life insurance and investment makes up a relatively higher premium. This would mean that there will be a required premium to keep the universal life insurance in force. It will therefore no longer be purely flexible to the sense of your capability to pay. There is another advantage of universal life insurance which is something you can borrow against its accumulated amount to pay the premiums at the right time and amount. This way, it will no longer be hard for you to pay.
If you are just concerned of the flexibility side of your life insurance, it will not be just about your capability to pay per se. It will be all about the interest rate of your life insurance which will accumulate the tax-deferred investment side of the universal life insurance. You will be able to find options to pay cheaper insurance premiums for universal life policy. To top it all, universal life insurance is therefore not cheaper compared to other life insurance available in Las Vegas Nevada NV because this has investment side. This type of life insurance is flexible only on the investment side but you are still obliged to pay the life insurance side which actually has fixed base premium to pay.
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