Universal Life Insurance
Universal life insurance should really be called “flexible” life insurance. Universal life is a cash value life insurance policy similar to whole life plans. The key difference is that universal life has flexible premium plans and face value adjustments are possible.
- Builds cash value
- Flexible payments
- Adjustable death benefit
- Earns interest
Universal Life Insurance
Universal life insurance should really be called “flexible” life insurance. Universal life is a cash value life insurance policy similar to whole life plans. The key difference is that universal life has flexible premium plans and face value adjustments are possible.
- Builds cash value
- Flexible payments
- Adjustable death benefit
- Earns interest
What is Universal Life Insurance?
Similar to whole life, universal life insurance is a life insurance plan that builds cash value like a savings account. This savings account is known as the cash value, and and will earn interest.
What are the Benefits of Universal Life Insurance?
There are many benefits to this type of plan, to include lifelong coverage, so long as you pay the minimum insurance charge. It also builds cash value, allows for withdrawals and policy loans, premium payment changes, and the ability to adjust the death benefit as life changes.
Can I Combine Universal Life and Term Life Policies?
This is a common and effective strategy to address temporary and lifelong life insurance needs. For instance, you may want to ensure your children’s college is paid-for, while at the same time want your burial expenses covered. You would use Universal life for the burial needs since it is a permanent need, and a term life insurance policy to cover you until your children are past the education years.
How Much Life Insurance Do I Need?
There are many rules of thumb you could follow, but the more accurate answer would be that you should speak with a knowledgeable life insurance advisor.