Long Term Care Insurance Consumer Buying Guide.
Insurance Leads Generation.
Annuities: The Shocking Secrets Revealed.
As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundle permanent life insurance products.In this article, we will discuss the types of death benefit of the universal life policy. The type of death benefit dictates exactly how much will be paid out upon the death of the insured in the future. The more common varieties of death benefit structures found in UL contracts are
1. Level
This death benefit remains level throughout the duration of the policy. This option is the least expensive since the risk decreases over time as the fund values increase.
2. Level plus cash value
This death benefit option pays out the balance of the cash value or accumulating fund along with the initial death benefit amount. This option provides a cost-effective means of providing clients with increasing life insurance coverage.
3. Level plus indexed
This death benefit increases annually by either a fixed percentage selected at time of issue or an external inflation index such as consumer price index.
The advantage of this death benefit is that the insured can have a fixed, increasing coverage amount, increasing either by the same percentage every year or by inflation
4 Level plus return of premium.
The return of premium death benefit option is similar to the indexed option. It has the same advantages and disadvantages. This type of death benefit has definite market appeal since the insured's heirs gets back whatever was paid into the plan with or without interest,plus the initial insurance coverage amount.
I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
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