The amounts of your death benefit, accumulated cash value, and premium are all interrelated with universal life. The more you pay per month in premiums, either the more protection you’re buying or the more cash value you’re building. You can’t have both.
The higher the protection you buy, either the higher your premiums or the lower your cash value. And the more cash value you want to build, either the higher the premium or the less protection you’re buying. Because your primary goal in buying insurance is protection, your primary consideration should be the amount of the death benefit. Cash value and your premium cost should be secondary factors, but clearly, your premium should be in line with how much you can afford to pay.
The higher the protection you buy, either the higher your premiums or the lower your cash value. And the more cash value you want to build, either the higher the premium or the less protection you’re buying. Because your primary goal in buying insurance is protection, your primary consideration should be the amount of the death benefit. Cash value and your premium cost should be secondary factors, but clearly, your premium should be in line with how much you can afford to pay.
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