Universal life insurance is lauded as just the right hybrid plan that any plan holder can have. This is because it has the benefits of both the whole and term life policies. It offers maximum investment flexibility aside from the protection of you and your loved ones. But as good as the mentioned advantages may sound, just like any other type of plans; it has limitations and exclusions as well. It is your duty to be familiar with them so as not to have unrealistic and unmet expectations and to avoid confusion. This article will give you a hand on such matter. Below are a few limitations of the mentioned plan.

– Acts of war -this restriction was formed at the onset of world wards. It may no longer applicable to some countries. However, as there are still nations where civil wars erupt from time to time in some of its part, it has not ceased to exist. In addition, because there are military personnel who are deployed in such warring nations, it had a new twist. It now covers primarily those who are active in the military service. There will be instances when insurance companies would not pay out the death benefit to a soldier’s family if he died in the war. This is why the government has compensated the unsung heroes in other ways.

– Suicide -no matter how low the instant term life insurance rates the insurer has given you, you will not make the most out of it if you will commit suicide. Usually, there is a clause in the terms and conditions agreed by both parties, which are the plan holder and the insurer, that in the event that the latter would find the cause of death questionable, it can always contest and conduct applicable measures as it deems necessary. If the carrier will have strong evidences to prove that the plan owner indeed took his own life, the former reserves the right to reimburse the latter’s beneficiary only the premiums the plan holder paid. The clause often takes effect for the first two years right after you bought the plan.

– Restrictions on aviation concerns -there are universal policy owners who have to travel often because of their job responsibilities. Such people are susceptible to some extent to limitations that concern rules on aviation. Some insurance firms would not pay out the death benefit to the plan holder’s beneficiary if the latter would die on board a plane. They may have different guiding principles about being a passenger on commercial planes and chartered flights as it can differently affect the lifespan of the policyholder.

– Misrepresentation of any facts -if you have an incurable medical condition, you would be better off trying to obtain cheap no exam term life quotes rather than declaring that you are in good shape and get caught in the near future. Misrepresentation of any facts at the application is a colossal mistake. This will not only cost you your loved ones’ financial security that they can take advantage in at their most vulnerable point. It will waste all your money as well as the insurer has the right not to reimburse all the premiums that you have paid for once they prove that you have lied to them.

– Susceptibility to great risks -universal life policy offers utmost flexibility. However, in truth, this very advantage is also its pitfall. This is because it leaves you susceptible to losses particularly if you do not know how to effectively manage great risks. If not handled well, this may cause your plan to get lapsed. Such type of policy will always go with risks as this is where you can make or lose money. This is why it is of paramount importance that you weigh in all your options prior to pulling the trigger.

– Clauses regarding converting into a term plan -permanent policies can be converted into term types. There would be no difficulty getting affordable no exam term life insurance rates if you have incurable disease. But universal and other permanent policies usually have a clause that deals with conversion. For instance, you may be asked by the carrier to pay the same premiums for a certain period of time.

The abovementioned limitations and exclusions should not keep you from buying universal life insurance plans. Instead, they ought to straighten out your expectations about what your plan cannot do for you.

If you want to find out more information about no medical term life insurance, you should visit David Livingston\’s site today where he shares a lot more information on how to get the best policy to suit your needs. Visit now at www.EQuote.com.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information, visit his site at http://www.equote.com/espanol/.

Author Bio: If you want to find out more information about no medical term life insurance, you should visit David Livingston\’s site today where he shares a lot more information on how to get the best policy to suit your needs. Visit now at www.EQuote.com.

Category: Finances
Keywords: affordable no exam term life insurance rates, instant term life insurance rates, universal life