When describing universal life insurance, one feature stands above the rest – flexibility. Universal life Singapore insurance gives you complete control over various aspects of your policy. Thus, if your goals and needs change, your policy can change too.
Universal life insurance permits you to:
- Adjust your death benefit – You can increase or decrease your coverage with your changing needs. Just keep in mind that increase in benefits is subject to underwriting.
- Add lump sums – Apart from making regular premium payments, you are allowed to deposit a lump sum of money whenever you wish to build your cash value. Instead of paying regularly, you can pay for your policy by adding occasional contributions.
- Set your initial premium – Within certain limits, you can decide the amount of premium you wish to pay for the coverage amount of your premium. The options:
- Deposit a large initial payment to sustain your policy for years.
- Choose a high premium with a set goal to stop payments after a while.
- Or, select a modest premium and pay for your lifetime.
- Increase or decrease premium – Your universal life insurance can change with changes in your life. During a period of financial crunch, you get the freedom to temporarily decrease your premium. Likewise, you can increase it after receiving a raise. You can benefit more from the tax-deferred growth of the policy’s cash value.
Death Benefit Options
While purchasing universal life Singapore insurance, you get to select from two death benefits:
Option 1 – Your death benefit equals the initial amount you select, in addition to the cash value.
Option 2 – Your death benefit usually stays level, and cash value growth helps balance the timely increase in your monthly insurance charges.
So, which death benefit plan is best for you?
Option 1 is a more cost-effective compared to option 2 for sustaining coverage. On the other hand, for policy takers who are in their 40s or younger, the second option offers a relatively inexpensive way of creating a potentially rising death benefit plan. It is advisable to consult your licensed permanent life insurance Singapore representative to ascertain the best insurance complementing your finances, needs and future. Learn about the features and benefits associated with universal life insurance and choose the best insurance plan accordingly.