So What Is Universal Life Insurance?
Universal life insurance is a type of permanent insurance that offers the insured more flexibility than the typical whole life policy.
The universal life insurance policy lets you move money easily from one savings component to the insurance and vice versa.
The variable premiums are split up between the insurance and savings accounts by the insurance provider and it lets you make adjustments to coincide with your own personal situation.
In short, it is both a term life policy and a savings account with a set interest rate.
So What Is Universal Life Insurance?
Universal life insurance is a type of permanent insurance that offers the insured more flexibility than the typical whole life policy.
The universal life insurance policy lets you move money easily from one savings component to the insurance and vice versa.
The variable premiums are split up between the insurance and savings accounts by the insurance provider and it lets you make adjustments to coincide with your own personal situation.
In short, it is both a term life policy and a savings account with a set interest rate.
Do You Really Need Universal Life Insurance?
If you live in the United States, you probably know that you need some kind of life insurance policy, especially as you get older and you have family or dependents who rely on your income to survive.
Usually you are told that you need a term life policy, but you can also opt to purchase a variety of different life insurance policies that include universal life insurance, variable universal life insurance, and whole life.
The most common policies are either term or whole life.
You would be surprised how many are unfamiliar of what an universal and variable universal life policy can do.
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What are the Benefits of Universal Life?
One of the main benefits of having a universal life policy is that you are in control.
This policy allows you to decide when you want to pay your premiums, how much death benefit your family will receive, and even how much money you want to pay for the policy (as long as you’re account meets the pre-set minimums on the account).
Another benefit of having a universal life policy is that your insurance provider will tell you how much your policy will cost you in its entirety.
What this means is if you have a $200,000 death benefit policy and your cash account has $200,000 in it, you never have to pay premiums again.
That is, until you borrow against your policy (which you can do in the form of a loan) and then you will have to begin paying that back.
Should You Get Universal Life?
The decision to invest in a universal life policy is not one to be taken lightly.
If you are relatively young and plan on living for a long time, this kind of policy may be a good fit.
It is recommended that you plan to have the policy for at least fifteen years so that you can get a return from the policy and your savings can turn into a viable investment.
Just remember to go with an insurance provider that knows what they are talking about and answer any question you may have.
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