Universal Life Insurance
If you’re considering life insurance options and want a flexible policy that offers both lifelong coverage and investment opportunities, universal life insurance might be the perfect fit. Read on to discover the key features, benefits, and considerations for this versatile type of insurance.
Key Features of Universal Life Insurance
Flexible Premiums: Unlike whole life insurance, universal life insurance allows you to adjust your premium payments. You can increase or decrease your payments within certain limits, depending on your financial situation.
Adjustable Death Benefit: You have the option to increase or decrease your death benefit as your needs change, subject to underwriting and policy guidelines.
Cash Value Accumulation: A portion of your premium payments goes into a cash value account that earns interest over time. The interest rate may vary, but there is often a guaranteed minimum rate.
Tax-Deferred Growth: The cash value grows on a tax-deferred basis, meaning you won’t pay taxes on the gains as long as they remain within the policy.
Policy Loans and Withdrawals: You can borrow against the cash value or make withdrawals, offering flexibility to meet financial needs. However, loans and withdrawals can affect the death benefit and cash value.
Learn more about Universal Life Insurance with our FAQs
Universal life insurance is a type of permanent life insurance that provides coverage for your entire life. It combines the death benefit of term life insurance with a savings component, similar to whole life insurance, but offers greater flexibility in premium payments and death benefits. This flexibility allows you to adjust your policy to meet changing financial needs and goals.
Universal life insurance is suitable for individuals who:
- Desire lifelong coverage with the flexibility to adjust premiums and death benefits.
- Want a policy that combines life insurance with investment opportunities.
- Seek a customizable policy that can adapt to changing financial needs.
- Prefer a policy that allows for tax-deferred growth of cash value.
Lifelong Coverage: Ensures your beneficiaries receive a death benefit whenever you pass away, provided the policy remains in force.
Flexibility: Adjust premium payments and death benefits to align with your financial goals and life changes.
Cash Value Growth: Accumulates cash value over time, which can be used for loans, withdrawals, or to supplement retirement income.
Tax Advantages: Enjoy tax-deferred growth of cash value, potentially reducing your taxable income.
Determine Coverage Needs: Assess your financial obligations, future goals, and the needs of your beneficiaries to choose the right coverage amount and policy structure.
Evaluate Cash Value Options: Understand how the policy’s cash value component works, including interest rates, fees, and the ability to make loans or withdrawals.
Compare Policies: Obtain quotes from multiple insurers and compare policies based on premiums, death benefits, cash value growth, and flexibility features.
Review Terms and Conditions: Carefully read the policy terms and conditions, paying attention to any exclusions, limitations, and the impact of policy changes on coverage and cash value.
Purchasing universal life insurance involves several important steps. Here’s how you can get started:
Assess Your Needs: Evaluate your current financial situation, long-term goals, and the needs of your beneficiaries to determine the appropriate coverage and policy features.
Get a Quote: Use our online tool to get a free, personalized quote tailored to your specific needs and budget.
Apply Online: Complete a straightforward online application, providing necessary medical and personal information for underwriting purposes.
Get Approved: Once approved, review your policy documents carefully to ensure they meet your expectations and financial goals.
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