Segments Which Can Benefit From Universal Life Insurance «

Segments Which Can Benefit From Universal Life Insurance «

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Segments Which Can Benefit From Universal Life Insurance

Segments Which Can Benefit From Universal Life Insurance

Life insurance is very essential for everyone as it guarantees financial help for the family in case of death of the insured person. For an average customer who does not have in-depth knowledge about various aspects, the selection process can be difficult. It is essential to compare all the different types of life insurance.

However, few insurance types are designed such that they are beneficial for every segment. Universal insurance is one such type. Even though universal policies are for whole life, they have one feature that acts as differentiator between a typical whole life insurance and a universal policy. A person can change the premium plan whenever he wants according to his financial stability.

Who Can Take Advantage of Insurance

There are some segments who can gain by opting for universal policies. These are:

Young people: Individuals who have just begun with their professional life and want to buy a life insurance must consider universal policies. Companies do consider the health status when offering different insurance options. Therefore, those who are in the 20s or 30s tend to get lower premium rates.

One benefit of opting for universal policy at an early age is that the person can begin with low premium rates and as he moves further and gets stable in life, he can opt for increased premium rates. This will lead to less burden in the initial phase of life and gradually provide more coverage.

Nonsmokers: People who smoke need to pay higher premiums. Insurance companies believe that over time, such people are prone to health related problems as compared to people who do not smoke at all.

A universal policy is a good option as non-smokers not only have to pay lower premiums but also get insured for a lifetime. They need to undergo medical tests once in the beginning.

Young Parents: Everybody wants a secured future for their children. Those who have small children must consider life insurance. It is even better to buy a policy before a couple thinks of having a child. This is so because as children grow, the expenses of their education and other needs keep increasing.

A universal policy is thus a very good choice for young parents. They can pay higher premiums in the beginning and then as the child grows, they can opt for lower premium plans. This will not have an adverse effect on the coverage.

Before one buys insurance, he must plan for the future very carefully. This means that he must consider the increase in expenses in future. This will help him take a wise decision. It is always better to add some extra amount to the actual figure so that there are no problems in paying premiums even if some emergency occurs.

One must either contact a company representative or an insurance agent to get the exact estimate and coverage according to his capacity at present and in future. One can also use online calculators. This tool allows a person to calculate the coverage and premiums based on the present health status, age, occupation and desired coverage.

Insurance Broker Association of India Helps The Climates To Choose the Best Policy →← Never Underestimate The Importance of Fire Insurance

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