A Quick Overview of Universal Life Insurance
Universal life (UL) insurance plans are becoming popular across the Middle East over the past few years. While they are often marketed to high-net-worth individuals, anyone who wants to get the highest death coverage can buy these plans. The demand for high-value life insurance is increasing as more people are now looking for smart ways to meet their wealth protection and estate planning needs.
Is a term assurance policy enough for estate planning?
Though many people use term assurance plans for estate planning, it is not always the best option. Term plans do not have cash value and therefore, they cannot be used for collateral for premium financing. What’s more, most term insurance policies stop after a certain age. On the other hand, Universal Life Insurance makes the best choice for estate planning because it is a Whole-of-Life (WOL) insurance policy that comes with a very high cash value and can be used as collateral for premium financing.
So, it is always better to explore universal life insurance plans if you are thinking about wealth protection and estate planning.
Is Universal Life Insurance Worth It?
Universal Life Insurance is one of the highly ranked policies available internationally. It is a straightforward and easy-to-understand high-value life insurance policy that you can use for:
- Wealth and succession planning
- Creating a philanthropic bequest
- Estate planning
- Key-person insurance (for corporate clients)
Of course, depending on your needs and preferences, it is a worthwhile UL policy option as it scores higher in terms of:
- Valuation
- Leverage
- Yield
What are the benefits of Universal Life Insurance?
Universal life insurance comes with a host of benefits. With this Universal life insurance, you can:
- Get as involved as you wish when it comes to managing your money depending on the level of risk you are willing to take
- Save money on insurance costs if you have better than average health and lifestyle
- Choose variable or fixed premiums that don’t increase
- Choose from different investment account options
- Limit downside risk
- Benefit from guaranteed minimum values
There is also Variable Universal Life (VUL) Plan that allows clients to park assets, such as cash, bankable assets, and publicly traded securities, to fund the policy. Since you can fund VUL with your assets, there is no need for premium financing in this case.
At New Age Insurance Brokers, we are one of the leading financial advisory firms in the UAE for almost fifteen years and have helped numerous families and individuals with wealth and estate planning and choosing the right High-Value Life Insurance Plan. Contact us at +971 4 3573378 or send us an email at info@newageib.com.
