Universal Life insurance is a combination of insurance coverage and investment opportunity in a tax-planned environment. Universal Life is one the best ways to enable the insured to accumulate money on a tax-sheltered basis.  Premiums are paid with after tax dollars, therefore are not tax deductible.

Universal Life has so many advantages for the group of people who have a permanent need for insurance and wish to have a tax planning in their investment portfolio.

Universal life is much sophisticated in compare with other type of insurance plans.

In Universal Life, insured has the choice of paying between a minimum to a maximum premium, which can changed based on the appropriate budget. The premium determined by the face amount, age, sex, smoker or non-smoker and health status.  The minimum premium represents the cost of the insurance, administration and management fees. The maximum premium showed the amount that deposit in an account, which keeps the policy exempt from the tax.

Life insurance provides compensation in the event of the insured’s death. There are different variations of life insurance policies, but all can be categorized as either temporary (term life insurance) or permanent (universal life insurance, whole life insurance, and limited pay life insurance).

In a Life insurance policy, there are four main parties:

1. the insurer (Insurance Company), usually a private life insurance company who underwrites the life insurance policy. This party is responsible for paying a benefit for the policy.
2. The insured is the person who is covered by the life insurance policy. Generally, this means that a benefit will be paid in the event of the insured’s death.
3. The owner of the policy is the person or company who actually purchases the life insurance. In the majority cases the insured and the owner is the same.
4. The beneficiary is the person/s or company who receive a benefit from the life insurance policy in the event of the insured’s death.