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Fancy an Extra Simple Explanation of a Universal San Jose Life Insurance

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Fancy an Extra Simple Explanation of a Universal San Jose Life Insurance

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									Fancy an Extra Simple Explanation of a Universal San Jose Life Insurance?
Universe is flexible; scientists say it expands and eventually contracts. So ca
n your San Jose life insurance. Namely – Universal life insurance, otherwise known
 as – flexible premium life insurance.
Want to hear the major difference from term life insurance? You guessed it – flexi
bility! How would you like all of your bills to be this way… One month you pay $50
, next month $250. Pretty useful isn’t it? It gets better; the insured (You) can a
lso select the frequency of the payments. Even the death benefit can be changed,
 but if it is increased, the insured must provide evidence of insurability.
Need cash? No problem, after you accumulate some cash value in your policy, you
may borrow against the cash value of the life insurance policy at relatively low
 interest rates. In fact, if structured properly (the contract does not meet the
 Modified Endowment Contract guidelines), one can access the cash values in an i
ncredibly tax preferential way.
How is this possible? This flexibility is possible because of higher premium pay
ments than would be required for term insurance. One must also remember that the
 less premiums are paid in, the less cash the policy will have. In fact, it may
even lapse, if the premium payments are not great enough to cover the mortality
charge, which is the amount necessary to cover the death benefit for the insured’s
 age group. In short however, once all the insurance expense requirements are me
t, all that extra money from the policy can go into so called cash value of your
 life insurance policy where it can enjoy some healthy growth!
One of the easiest explanations you might enjoy is comparing your universal San
Jose life insurance to owning a home. You see, if you have term life insurance p
olicy (you only pay for insurance) then it is like renting an apartment – your sta
y is limited and all of your hard earned money goes to the landlord. Meanwhile,
your buddy who has Universal Life Insurance Policy is making bigger payments but
 instead of just giving all the money to the landlord, his money also goes towar
ds the “equity” of the house, which she can access later on. Beautifully, in time, y
our buddy’s cash value of her life insurance policy might grow much bigger than wh
at she ever spent on life insurance. Pretty neat, isn’t it?
Finally, how does money really grow in your San Jose life insurance cash value a
ccount? There are three ways. One is a fixed way where one gets a low but fixed
and guaranteed or declared rate for the rest of days. Second is your cash value
can actually sit in the mutual funds and this one is more risky because you cash
 values can actually fluctuate, hence – it’s called a “variable” policy. Third and my fa
vorite one is called the Indexed policy or Equity Indexed. The latter grows toge
ther with a certain index, sometimes into double digits and has no market downsi
de risk.
Bottom line is a Universal San Jose Life Insurance is a very flexible and versat
ile product. You’d be amazed what else it can do for you if you take the time to l
earn more about it. If you live in San Jose or Bay Area, don’t hesitate to give us
 a call for a personal, no obligation consultation. Live well!
http://sanjose-lifeinsurance.com

								
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