UNIVERSAL LIFE INSURANCE
If you are planning for the inevitable, namely the end of life, you would be wise to take a good look at universal life insurance. This kind of policy can provide the policyholder with many benefits above and beyond other kinds of life insurance policies; however it may come with larger premium payments than other kinds of similar coverage options because of the greater benefits. By researching this all a bit and understanding what can be expected from a universal policy in particular, you might find that this is the best coverage choice for you.
A more flexible version of permanent life insurance that offers the lower-cost protection of term life but also includes a savings element to it, (normally an amount regularly invested to enable the cash value to increase over time), universal life is quite an attractive option for many. And, it is important to note, the death benefit, savings aspect and the premium amount can all be reviewed and updated as a policyholder’s needs change. Unlike from whole life insurance, universal life gives the policyholder the option to utilize the interest from the accumulated savings to pay a portion of the premiums.
Policyholders will generally pay a premium amount that is determined from a battery of health questions and by the amount of coverage requested. If premiums are paid on time consistently, the policy will remain active.
The option of investing a portion of one’s premium can also potentially increase the benefit amount nicely over time. With each payment of the premium, the balance of the cash value grows. Additionally the funds can be borrowed upon as needed.
Under the coverage of a universal life policy, one can choose a preferred amount of death benefit and, should tragedy strike and the insured dies as a result of a covered cause, the beneficiaries soon can receive the death benefit amount. This can be utilized in the payment of such things as remaining medical bills, for supplementation for lost wages, etc.
These policies usually stay in effect until they are cashed in, canceled or the insured dies. Planning for the end of life can be sad or even painful, but don’t let the temporary discomfort stop you from exploring some of the different universal life policy choices that are available. Call your insurance professional today.