Universal Life Insurance

Universal Life Insurance is a less costly kind of permanent life insurance, which includes a helpful savings element. It not only provides a death benefit after the policyholder has died, it also allows for a cash value buildup during the policy’s lifetime, which can be accessed for emergencies or eventually even utilized to pay the policy premiums making it essentially cost-free.

A policy offering universal life coverage can be appealing to an individual for a myriad of reasons. First, it offers more flexibility than a whole life policy and enables the policyholder to determine not only the amount of insurance coverage, but also the premium payments. This kind of insurance provides a death benefit that is also tax-free in many cases. The accumulation of cash in this type of insurance policy is tax-deferred and can be accessed during the lifespan of the policy to help the policyholder in the use for other purposes, for example as a supplement to a pension, to help pay for a child’s schooling, or for an unexpected need for cash.

Another great feature of universal life insurance is that the premiums paid also earn interest. The policyholder also has the option to make withdrawals from the policy’s account value or to even take out a loan against the account value.

In addition to the basic universal life policy, there is also a survivorship option with this type of insurance. Survivorship universal life policies cover two individuals, paying out the death benefit when a death occurs.

Speak with an insurance professional for more detailed information.