Understanding Universal Life Insurance
No one likes thinking about when or how they’ll die. But when you have a family, it’s important to plan for your death. Your family will have certain financial responsibilities when you’re gone. And universal life insurance is one way you can help them survive without you. This life insurance assures that your family will receive a financial benefit upon your death.
Universal life insurance offers permanent benefits. This means that unlike term life, universal life doesn’t have term limits. The policy is good as long as you pay the premiums. It also accrues cash over time. A portion of the monthly premium goes into an investment account. This balance grows because of interest and continued contributions. You can withdraw the money or apply it to future payments.
You also have the flexibility to adjust your coverage as your needs change. You might find that you need more or less coverage. You also might want to keep the cash value as an interest bearing savings until your death.
Even if universal life insurance isn’t what you want, there are others form of life insurance. You might want to learn about whole life insurance or term life insurance. But do it as soon as possible. It’s more difficult to get life insurance if you’re unhealthy or elderly.