Looking to buy variable universal life insurance? Want to know how to get the best rate with a reliable company? Here's how ...
What is variable universal life insurance?
This is a type of policy that consists of two parts - life insurance and an investment known as cash value. When you pay your premium, part of that money goes to pay for life insurance and the rest goes into your cash value account.
The cash value is invested in a group of funds by your insurance company. These funds generally consist of mutual funds that contain stocks and bonds. You can choose what funds you want to invest in, and these funds grow tax deferred. You can borrow money from the cash value portion of your policy at any time.
With variable universal life you're essentially paying for pure life insurance and investing in a mutual fund that increases in value on a tax-deferred basis.
When you borrow against your cash value you get this money tax free. However if you borrow too much, or the funds in the cash value portion of your policy decline, you may be required to increase your premium to keep your policy in force.
How can I get a cheap rate?
The best way to get a cheap rate is to get quotes from different companies and compare them. You can do this quickly and easily by going to an insurance comparison website. In addition to getting rate quotes, the best comparison sites let you talk to insurance experts so you can get answers to your questions and get advice on how to get the best policy and the best rate for your situation. (See link below).
How do I know the company I choose is reliable?
Most comparison websites only affiliate with A-rated companies. But if you want to check out a particular company you can visit A.M. Best's website (ambest.com) to get their financial rating, and J.D. Power & Associate's website (jdpower.com) to get their consumer rating.
Visit http://www.LowerRateQuotes.com/life-insurance.html or click on the following link to
get variable universal life insurance quotes from top-rated companies and see how much you can save. You can get more tips and advice in their Articles section.
The author, Brian Stevens, is a former insurance agent and financial consultant who has written a number of articles on variable universal life insurance.
