The policy Other Application Manufacturers limit may not be decreased beyond a predetermined amount, and increasing the coverage may subject you to underwriting requirements. Realize, however, by doing this, the face amount of the policy will change because the difference between the minimum monthly premium and the lower amount you pay is taken from the policy cash value. The best advice is to shop around and always know what's in the fine print. Companies may have limits as to how many withdrawals you may take each year and what the minimum amount can be. Some companies guarantee that the account value will earn interest at the company's current interest rate. Be aware that most companies, if not all, include an expense charge for each premium payment.Universal Life Insurance is a type of insurance policy that not only provides protection in the event of the insured's death, but it also serves as an investment option. You have the option to make lump sum payments which will increase the cash and death benefit value of your policy. Always be aware of your policy's terms and conditions. Other companies have come out with policies where rates are guaranteed, regardless of the interest rate the insurance company pays. How does it work? With a Universal Life policy you are in control of the amount and how often you pay the premiums. The interest on the cash value of the policy grows tax-deferred. Although it is flexible, there are certain parameters you must follow. Rates vary depending on the company. It may earn money market interest rates.You may also, at times of financial hardship, lower the premium amount you pay. It's flexible and allows you to increase or decrease the amount of insurance coverage you need throughout the policy term. Each withdrawal may be subject to fees or charges.
