Universal life insurance is a type of permanent life insurance and is similar in many ways to whole life insurance. The advantage of such a policy is in its flexibility and the potential for cash value growth. This insurance offers the policy owners a chance to change the policy (within limitations) to suit their requirements, budget and other changing needs. If you are financially stable, you can also increase the investment amount to take advantage of higher growth rates; however, if you are facing financial difficulties, you can use the accumulated cash value to pay the premium amount.
Universal insurance offers you optimum control over your financial requirements by providing the below mentioned benefits –
• Flexible premiums
• Flexible protection
• Tax-free death benefits
• Guaranteed returns
Let’s discuss all the above mentioned benefits in detail :
A universal life insurance policy allows the policy owner to control the amount of premiums and payments. As per your financial condition, requirements and future planning, you have the option to increase the premium or make lump sum contributions, subject to the limits specified in your policy. The extra amount not just gets tax-deferred but also increases the cash and death benefit.
A universal life insurance policy allows its owners to select the amount of protection that best suits their family, business and all other requirements. It also permits the owners to increase or decrease the coverage as insurance requirements change. Increased coverage may be subject to various underwriting requirements.
Tax-free Death Benefits
Under current tax law in Indonesia, universal life Indonesia insurance policy provides tax-free benefits to the beneficiary.
Normally, there is a specified minimum guaranteed interest rate applied to the policy, which means that you are guaranteed a certain minimal return on the cash portion. However, if the insurance company does well with its investments, the interest rate of the cash portion may increase.
Universal life insurance is a great investment option because it combines the benefits of permanent life insurance with tax-advantaged investing. It includes the benefits of both term and permanent life insurance policies, which makes it a great policy for all your investment requirements. If you are interested in this type of permanent life insurance Indonesia, look for a reputed provider today to have a secure future. Make sure that the insurance provider you have selected is reputed, and answers all your questions properly.
For more information about universal life and permanent life insurance policy, visit http://universallife.co.id/universal-life