UNIVERSAL LIFE Insurance – Customer-friendly
Buying life insurance can seem confusing because of all of the options available, but many who take a closer look at what universal life insurance offers will make the decision to purchase this type of coverage. Universal coverage is unique from other types of coverage that you may be thinking about because it provides you with both death benefits and the ability to accumulate cash value through your policy.
With universal life insurance, the death benefits will remain in place until the named beneficiary passes away or until the individual terminates the policy. This is a true benefit to those who are concerned about their premium amount changing as they get older and who want to enjoy the benefit of having the same premium amount remain in place throughout their lifetime.
This type of insurance is generally considered to be a true asset rather than basic life coverage because it does have the ability to accumulate value over time. With each payment that is made, a portion will be applied to the cash value, and the value will grow with each payment and with the accumulation of compounded interest. This equity in the policy can then be withdrawn or borrowed against as needed for any type of purpose. For example, some will use it to pay for a child’s college education, and others will use it to pay for some of their retirement plans or for debt reduction.
Universal coverage is generally a type of policy that you will have in place throughout your life, and it can be used for both death benefits and as an appreciating asset. If you are interested in purchasing this type of policy, carefully review your coverage needs, and request a quote for the coverage. Keep in mind that your health status, age an the amount of death benefits will all play a role in the amount of your premium. In addition, the rate of return on the accumulating value may also vary from policy to policy.