| Universal Life Insurance is a type of
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| | hardship, lower the premium amount you
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| insurance policy that not only provides
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| | pay. Realize, however, by doing this, the
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| protection in the event of the insured's
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| | face amount of the policy will change
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| death, but it also serves as an
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| | because the difference between the
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| investment option. It may earn money
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| | minimum monthly premium and the lower
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| market interest rates. It's flexible and
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| | amount you pay is taken from the policy
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| allows you to increase or decrease the
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| | cash value. Be aware that most
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| amount of insurance coverage you need
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| | companies, if not all, include an expense
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| throughout the policy term. Although it
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| | charge for each premium payment.
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| is flexible, there are certain parameters
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| | • Withdrawals - You may withdraw money
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| you must follow. The policy limit may not
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| | from the cash value of the policy.
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| be decreased beyond a predetermined
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| | Companies may have limits as to how many
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| amount, and increasing the coverage may
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| | withdrawals you may take each year and
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| subject you to underwriting requirements.
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| | what the minimum amount can be. Each
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| Always be aware of your policy's terms
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| | withdrawal may be subject to fees or
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| and conditions.
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| | charges.
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| How does it work?
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| | Rates:
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| With a Universal Life policy you are in
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| | Rates vary depending on the company. Some
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| control of the amount and how often you
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| | companies guarantee that the account
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| pay the premiums.
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| | value will earn interest at the company's
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| • You have the option to make lump sum
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| | current interest rate. Other companies
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| payments which will increase the cash and
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| | have come out with policies where rates
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| death benefit value of your policy. The
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| | are guaranteed, regardless of the
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| interest on the cash value of the policy
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| | interest rate the insurance company pays.
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| grows tax-deferred.
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| | The best advice is to shop around and
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| • You may also, at times of financial
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| | always know what's in the fine print.
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