?What is global life insurance

 ?What is global life insurance

Comprehensive life insurance is a kind of permanent life insurance. With a comprehensive life policy, an insured person is covered throughout his or her life as long as he pays insurance premiums and meets any other requirements of his or her insurance policy to maintain coverage. Like many permanent life policies, universal life insurance combines the savings component (called "monetary value") with lifelong protection. When it disappears, your policy death benefit is paid to your beneficiaries.

Read on to learn more about the benefits of universal life insurance.

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? What are the benefits of universal life insurance

In addition to lifelong protection, there are some additional features of global life insurance:

You can withdraw money or borrow against the monetary value of the policy.

Your cash value earns interest.

You have flexibility with insurance premiums.

You can adjust the benefit of death.

Withdrawing money or borrowing against it

When you pay the universal life insurance premium, part of each payment goes toward paying the death benefit. Another part also goes to building the monetary value of the policy. Over time, after accumulating funds, you may be able to withdraw or borrow against the monetary value of the policy (the amount available varies by company)1. Rules on how and when to do this vary by insurance company and policy. However, it is important to know that this may reduce the eligibility for death, create tax effects or even cause your policy to expire.

Earn interest on the monetary value of your policy

The monetary value of a comprehensive life policy generally earns interest that is in line with current money market prices, says the Insurance Information Institute (III). Of course, it's important to note that the interest rate will fluctuate with the market, which means that the interest you receive may also fall. However, some companies provide protection against this while ensuring minimal performance on this policy.

Flexibility with premiums

If the monetary value of your account can cover costs, you may have the ability to reduce or stop paying your premiums on global life policy for a certain period of time, say Third.

This can be useful if money gets tight and you're looking for ways to cut monthly bills. But, there can be negative consequences, too, says the third. For example, your coverage may expire if you use the cash value of the account to pay your insurance premiums.

Keep in mind that you must continue to pay premiums to keep your insurance policy in effect. If you don't pay your premiums, your insurance policy will expire (which means you no longer have coverage). If you can't pay the premium on time, the insurance company may offer a grace period - a specified period of time during which you must make up the missed payment before the coverage period expires. Read your policy or see your agent for more information.

Adjusting the death benefit for the policy

The flexibility of the overall life policy also extends to the entitlement to death. At some point, you may want to increase the amount paid when you die. This is something that some insurance companies allow, as long as you pass a medical examination, says III2.3. Similarly, you may choose to reduce the death benefit, to reduce the cost of the policy. Remember that if you increase the death benefit in the policy, it may increase the premium you pay.

? What is the difference between global life insurance and life insurance

With a comprehensive life insurance policy, you may be able to adjust your insurance premiums and death feature over time to suit your needs. With an entire life insurance policy, premiums and death benefits are determined for the duration of the policy.