Long Term Care Insurance Consumer Buying Guide.
Insurance Leads Generation.
Annuities: The Shocking Secrets Revealed.
As we mentioned in previous articles UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and to explain than traditional bundled permanent life insurance products. In this article, we will discuss the investment bonus in the universal life policy.
Investment bonuses are special rider guaranteed by the insurance companies for UL policy that does not exist in any other types of life insurance. As insurers are being forced to increase their COI charges to maintain product profitability, another way to make UL products more attractive for clients is to add or enhance investment and interest bonuses.
Since there are many different approaches to investment bonuses, understanding the interest bonuses of the UL plans before purchasing universal life insurance policy is essential because it will help you to determine how much fund is needed and the condition that the maximum investment bonus will be paid to your policy.
In fact, the size of the investment bonus paid varies from one UL product to another. The basic plans pay an additional percentage when the bonus is credited, while other more complex plans pay varying amounts depending on the credited rate in effect at the time of the bonus. Generally, a sliding scale formula is applied so that the higher the credited rate is, the higher the interest bonus will be.
A surrender bonus is another feature in the UL plan that pays a bonus to the policyholder if they surrender the plan. It is not paid on a partial surrender or at death. It could be considered a refund of COI charges since the bonus is ordinarily equal to a percentage of the accumulated COI charges to date.
I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://life-insurance12.blogspot.com
http://lifeinsurancexiii.blogspot.com
