Why Expires my life insurance?
Billions of dollars every month death benefit of life insurance failure due to lower interest rates on life insurance products of great interest. The product of which I speak is known by many different names: 1. 2. Universal Life Flexible Premium Adjustable Life 3. premium.
You might think that as long as you pay the premium, the policy will remain in force. Unfortunately, that is not how it works for these policies. The premium payable is calculated based on the interest credited based. If the interest rate is credited to your policy is less than the interest rate will be displayed when you bought the policy, the premium should be higher.
Universal Life is a combination of all the traditional life and long life. The best of both worlds. It has the ability to create the present value of the policy, and not having to pay the high cost of living bonuses.
Universal Life differs from the traditional whole life. Instead of proving dividend policy, sets universal life interest policy. When interest rates 8% were to buy your life insurance policy and rates are 4% today, should be a much higher premium to pay for the increased loss of interest to compensate, in which the present value if your money value reduced, and one day your flow in life insurance do.
The best way to find out if your policy will expire unexpectedly is an illustration of the strength of your insurer to order.
OK, so he asks a representation in power, and now what? The first thing to do is to contact the agent who sold the policy first and asks them to explain. I would also ask the agent why not do with you an annual review in order to keep your contract in good condition. Second, you should look for an impartial "third parties" see to discuss the report with you.
If you ask an illustration, in fact, it is best to always make two pictures. The first would be to use the current premium and the actual cost of insurance and the current interest rates. The second presentation, ask the insurance company to extend to resolve the premium coverage to 100 years.
With these two representations of strength, we can determine whether it is in your best financial interest to keep its current policy, or throw it and buy a new policy.
I have 27 years of experience in the insurance industry. I am a member of the National Ethics Association (Ethics.net) The name of my company is to make provisions Shopping, Inc. is accredited by the Office of Good Practices bbb.org members.
