Universal life insurance and characteristics
Universal life insurance is a type of insurance with the functions of protection and wealth management. Compared with traditional life insurance, the characteristics of universal life insurance are as follows:
First, payment is flexible and transparent. Usually, after the insured pays the first premium, the remaining premium can be paid irregularly. In addition, the insurance company will inform the policyholder of the various expenses paid by the policyholder expressly.
Second, the flexibility is high, and the sum assured is adjustable. Account funds can be withdrawn at any time according to the contract, and the insured amount can also be increased or decreased according to the insured’s economic situation.
Third, guaranteed income and regular settlement. Universal insurance has a relatively low guaranteed return, but customers with a return on investment above the guaranteed return can also enjoy it according to regulations.
Therefore, in addition to providing protection, universal insurance can also achieve the purpose of accumulating cash value and can meet individual needs for estate planning, property distribution, and asset appreciation.
How to cleverly use universal life insurance to solve life risks
Different people have different problems that they want to solve through universal life insurance. Here are some examples for your reference.
Example 1: Honghong is a single mother with two babies. She has 5 million yuan in cash, of which she wants to keep 3 million yuan for her retirement and a lot of money for her children. In this way, she can spend 2 million yuan to configure universal life insurance with an insured amount of up to 6 million yuan, and also set up a family trust. After she passes away, her children can apply for compensation from the insurance company. Each child can receive 3 million yuan.
Example 2: Mr. Du is a 40-year-old high-net-worth person who wants to do global asset allocation, and wants to diversify the currency and geographical risks that may occur. He has US dollar assets and does not put all his hopes in one basket inside. Mr. Du does not need to remit all the assets of 10 million yuan. He can configure universal life insurance with an insured amount of 10 million yuan overseas so that the premium is only about 2.5 million yuan. The beneficiary of the 10 million insured may be able to get it when it is received. In this way, Mr. Du can make a reasonable plan for all his cash flow of 7.5 million, or use it for living and operating expenses, Or make a high-return investment, so that you can feel at ease without worrying about it.
Example 3: Many things can realize wealth inheritance and inheritance, such as cash, real estate, company equity, company securities, and intellectual property rights. The channels for realization are often legal inheritance and testamentary inheritance. However, the value of this part is not stable enough after the owner’s death, and there is even a risk of asset shrinkage. In the current financial instruments, how to plan your wealth to be easier to maintain and increase in value? Cash comes first. The beneficiary of universal life insurance can get cash.
Therefore, universal life insurance can not only meet the needs of individuals but also meet commercial needs. It can be used as a plan for corporate income protection, and can also realize wealth inheritance, and so on.
To sum up, universal life insurance has the characteristics of flexible payment, transparent fees, high flexibility, and adjustable insurance amount. Everyone has different problems to solve through universal life insurance.