Basic Life Insurance

Universal Life Insurance has three types: Single Premium, Fixed Premium and Flexible Premium.

Single Premium Universal Life Insurance is also called as Modified Endowment Contract (MEC) due to the revision of the tax code. It is paid by a single initial payment. Payments must be paid in five or less years.

Fixed Universal Life Insurance is paid for by periodic premium payments. The payments are made within a short period of time.

Flexible Premium Universal Life Premium permits the policyholder to see how much they want to pay each time the premium is due. They also offer two death benefit options: Level death benefit and level amount at risk.

A life insurance that is based on cash value is called Universal Life Insurance. It means that policy given to the insurance requires premium payments that are higher than the usual cost of insurance and it is credited by the cash value given. Every month, the cash value will be credited with interest. The policy will also be debited each month with COI charge that is being drawn from the cash value if the insurer failed to give his premium payment for that month. A financial index is where the insurer can track down the interest credited to the account by the insurance company.