UNIVERSAL LIFE Insurance
Death is an inevitably for everyone, but it can be difficult to determine when death will occur. When a loved one passes away, the surviving family members may be faced with funeral expenses and medical bills. In addition, the family may struggle financially due to loss of income that the deceased family member once provided. The financial impacts of death can impact a family for many years or even decades, but universal life insurance is a type of coverage that can decrease or even eliminate the financial burden a family will face after the death of a loved one. More than that, it can help the insured with financial planning for the future.
Universal life insurance is a unique type of coverage because it also can be viewed as an investment. With your universal life policy, you will make regular premium payments and will have a guaranteed payout to the beneficiaries upon your death. Some beneficiaries will use the funds to pay off an outstanding mortgage or other debts. Others will invest the proceeds and use the investment income to supplement lost income. These are just some of the ways that death benefits can be used to improve the quality of life for the surviving family members. Generally, this type of policy does not have a term length associated with it, the death benefits will remain in place for as long as the policy is active.
Universal life coverage provides you with more than just death benefits. With each premium payment that is made, cash value will accumulate with the policy. Generally, the cash value also accrues over time due to interest earned. This cash value can later be borrowed or completely withdrawn from the policy, and it may be used for investments, as a down payment on a new home, for retirement income or for any number of other purposes.
When you purchase a universal policy, keep in mind that both the amount of death benefits and the amount of cash value that accumulates with each premium payment can be adjusted. This provides the insured with more flexibility regarding benefits and the cost of the policy.