Universal Life in China, Hong Kong and Indonesia: An Overview

Life insurance investment requires a cautious and prudent approach. The universal life policy plans have certain features and benefits, as explained below, that make it a popular option for buyers in China, Hong Kong and Indonesia.

Universal Life

Traits of Universal Life Insurance

Alterable Premiums
Universal life gives you greater freedom to plan an insurance combination that suits you the best rather than following a rigid framework. Any figure that falls in the maxima –minima range as fixed by the IRS is acceptable. Premiums can be increased, decreased, or even avoided altogether, as per your current financial situation.

Adjustable Death Benefit
In contrast to term insurance, the death benefit can be changed, while complying with the broad limits set in the contract, without having to opt for a new policy altogether.  This continued protection even if the basic requirements change is a unique feature of universal life.

Change in Credited Interest
The insurance company has the right to periodically change the interest rate that is credited. However, this rate will never go down the minimum amount stipulated in the contract. It is this feature along with the dividend earned on the amount invested that leads to lesser premium amounts as the company can earn returns from the market.

Alternate plans
Universal Life in China, Hong Kong, Indonesia and most other parts of the world offers two separate plans to treat death benefit, Level Death and Increasing Death.  Level Death Benefit option, offers the death benefit to be the face amount only. The net risked amount is the difference between face value of the policy and the current policy value, which keeps on decreasing as the policy value increases.  This lowers the cost of insurance. On the other hand, the Increasing Death Benefit option offers the sum of the contractual policy figure and the latest policy value as the end gain.  This increases the long term expenses due to increasing cost of insurance but accumulates a larger amount at the time of death.

Universal Life

Why Opt for Universal Life?

Settle Debts
It takes away the frown from your forehead as paying off educational loans, estate taxes and mortgages becomes a cakewalk with direct withdrawals or taking a loan against the accumulated cash value of the policy. It’s an all smiles proposition as these loans and withdrawals are tax-deferred.

Stable Flow of Income
UL ensures that the deceased is missed is only emotionally and not because of financial strains as the death benefits keep the stream of income flowing continuously to the family through interests, dividends and/or lump-sum payment.

Equitable Distribution
The long-term multiplying effect of the cash value helps you to plan in advance the equitable income value that is to be distributed among your beneficiaries. Prior calculations can be done to help figure out your post retirement plans as well.

Use the below given universal life sites to educate yourself about your life insurance needs. Get life insurance rates for Term, Whole, and Universal Life Insurance.

Universal Life Hong Kong & China: Universallife.com.hk

Universal Life Indonesia: Universallife.co.id

Life Insurance Policies: Whole vs. Universal

life insurance

They say, “What’s in the name?” When it comes to buying a life insurance policy, name is extremely important. Each one of us is different and so are our saving requirements. Before selecting a life insurance policy, you must analyze your personal and family requirements both pre and post your death. There are two different types of permanent life insurance. This article will help you understand more about these policies so that you can make a thoughtful decision.

Whole life insurance

This insurance covers you as long as you live. Here, you need to pay the same amount of premium for a specific time to receive death benefit. Usually, this policy is kept in force for your entire life, no matter for how long you may live. This type of insurance policy provides life insurance coverage with a savings feature. As a result, you may end-up paying higher premiums initially compared to term-life insurance.


With each premium payment, your cash value increases and this savings element of your policy builds-up your cash value on a tax-deferred basis. The presence of cash value in these policies is a real benefit because you can borrow against this cash value and also use it to pay the premium amount. Whole life insurance policy is made to fulfill an individual’s long-term goals and thus it is advisable to keep it in force for as long as you are alive.

Universal life insurance
This policy is also famous as an ‘adjustable insurance policy,’ because it offers more benefits than whole life insurance, and the policy owner has the ability to reduce or increase their death benefits and premium amount as per their financial needs (after first premium payment has been made).  When it comes to death benefit, the policy owner has two options – a fixed amount of death benefit, or increasing death benefit that is equal to the face value of the policy, plus, the cash value amount.

In case of financial issues, you may stop your premiums and use your cash value to pay the premium amount. However, there should be enough money accumulated in your cash value account to cover the payment of the premiums. The alternative of policy loan is another added perk in Universal life insurance. It is imperative that you do not make regular withdrawals from your accumulated fund because that will reduce the cash value amount.

While purchasing a particular type of life insurance policy, it is important to prioritize your requirements.

To know more about Life Insurance policies visit: Universallife.co.id/universal-life

Benefits of Buying Universal Life Insurance in Indonesia

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 Life insurance

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 :
Permanent life insurance
Flexible Premiums

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.

Flexible Protection

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.

Guaranteed Returns

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