Reasons to Opt for Universal Life Insurance in Singapore

Universal Life Insurance is a specific type of flexible permanent life insurance, prevalent mostly in the United States and some other parts of the world, such as Singapore. In this type of policy, the excess premium over and above the current cost of insurance is credited to the cash value of the policy every month along with the interest accrued. In universal life Singapore insurance, the cost of insurance (COI) charge and other charges and fees are drawn from the cash value of the policy.

Life insurance singapore

The insurer determines the insurance to be credited to the account but has to deliver a contractual minimum rate of 2%. The policy is termed as an “Indexed Universal Life” contract, when the earnings rate is pegged to a stock, bond or any other financial index.

The relevance of Universal Life Insurance is on the rise globally, as life insurers in some of the booming Asian economies are challenged to introduce products reflecting the needs and requirements of the customers of today. The customers can opt for Universal Life Singapore insurance policy for wealth creation, wealth distribution, legacy planning, and even in the instance of protecting their interests as shareholders in family businesses.

Many people in different parts of the world are realizing the various Benefits of Universal life insurance plans that offer both the low cost protection of term life insurance, as well as a savings element providing a cash value buildup. The policyholders are also free to alter the death benefits, savings, and premiums as per their circumstances. The interest accrued from policy savings can even be used to pay premiums. Customers can also make the most of a growing cash value of investments, where the rate of growth is variable and adjusted monthly.

Permanent life insuranceUniversal life Singapore insurance would remain in force for the period of guarantee even when the cash value drops to zero. Such plans come with a no lapse guarantee and would not lapse if certain minimum premium payments have been paid. Owners can also use these plans to bring down their premium outlays to a minimum.

Given all the merits, more people looking to enhance and protect their wealth are opting for Universal life plans from leading insurers that have considerable experience in the domain. The policy holders have everything going in their favor. They have a guaranteed return throughout the life of the policy, and a cash value from which withdrawals can be made without having any effect on the lump sum benefit.

Universal Life Insurance – Get the Flexibility to Adjust Your Changing Requirements

universal life

No one can run away from the surprises of life, but we can definitely make adjustments. Insurance needs change with life, which makes it important to search for a policy that provides you with the flexibility to adjust your premium payments. There are different types of policies available; however, if your requirements are ‘flexible,’ a Universal life insurance policy promises the ideal solution.

Also termed as ‘adjustable life insurance,’ Universal insurance policies offer higher flexibilities as compared to all other types of policies.  It provides the buyer the liberty to reduce or increase their death benefit and also pay their premiums at any time, once their first premium payment has been made. In fact, these policies also allow you to change your premium amount and increase the face value of your insurance coverage.

The Benefits

Helps You during Your Hour of Need

When you buy a Universal Life Insurance policy, you get cash value, which can be used to pay premiums in case of a financial hitch. If you have cash value, your policy will not lapse even if you fail to pay a premium. However, make sure to discuss the status of your cash value fund with your insurance advisor.

Universal Life Insurance

Provides Alternative Policy Loan

An alternative policy loan is another benefit promised by Universal insurance. However, it is important that you do not make regular withdrawals from your accumulated fund because it will reduce the cash value of your policy.

Universal policy is designed to give you and your family lifelong security, as per your requirements. If you stay in Singapore, simply search the web using keywords such as ‘Universal Life Singapore,’ or ‘Universal Life Insurance’ to get a list of the best permanent life insurance providers.