If you want to be able to control the frequency and amount of your life insurance premiums, a universal life insurance policy might be right for you. The insurance company will set a minimum cash value for your policy, after which you can vary the amount and frequency of your premium payments and even skip payments if necessary. Because your policy has a cash value, you can borrow against its value or withdraw money from it. The cash value of your policy will depend on your premiums, the amount of the death benefit, the interest rate, and expenses incurred by the insurance company. Because of the complexity of universal life policies, you should discuss it very thoroughly with your insurance agent before purchasing one. The rate for your policy will be decided on a yearly basis, but will never drop below your company's 'guaranteed return' rate, which is usually around four or five percent. The insurance company will charge you for their service, a fee known as a 'load,' and these loads will be deducted from your policy's cash value. Consult an insurance agent in your area for more information about universal life insurance.
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