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Universal Insurance

There are several reasons why individuals purchase universal life insurance, and with a closer look at what this type of insurance has to offer, you may determine that it is suitable for your needs and goals. This is a unique type of coverage that provides typical death benefits to the beneficiaries when the insured passes away, and it also can accumulate cash value over time. This makes it a financial asset or a type of investment for the insured.

Unlike other types of life coverage that you may be considering, universal life insurance may never expire. There is no defined term length, so the coverage may remain in place throughout a lifetime as long as the premium continues to be paid. Many will use this type of policy for the death benefits it provides, but some will purchase the policy to provide a legacy to heirs because the coverage will remain in place until death. While there is not a term length to adjust, the death benefits can be adjusted at the time of purchase to meet your needs.

When you purchase a universal life policy, you may also have some control over how quickly the cash value in the policy accumulates. By working with your insurance agent, you may increase the premium to accumulate cash value at a faster pace or lower your premium for less cash value accumulation. Typically, the cash value will also grow due to interest applied to the account. The insured typically may withdraw the funds through a loan on the account. The interest and loan terms will vary by policy. These funds typically have no restrictions regarding use, so they commonly are used as a down payment for a new home, for investments, to pay for a child’s college education or for various other purposes.

Universal life coverage has many benefits that make it unique from other types of coverage available to you. This type of coverage can be a true asset to you for financial planning as well as for estate planning. You may consider getting a quote for universal life coverage today.