Universal Life Insurance

The Benefits of Universal Life Insurance

Life insurance is available in several types. One such type is universal life insurance, which is a policy that builds value and has tax-deferred benefits. A policyholder with this kind of insurance will see the premiums accrue interest. It is similar to a life insurance policy and interest bearing savings account in one, which offers current benefits and future benefits for your family.

A universal life insurance policy helps you build your financial portfolio. You are able to protect assets and get a minimum rate of return from this coverage. Funds can be withdrawn if needed or left for surviving family members to pay medical bills and funeral costs.

How it works is the cash value accrued above the premium is invested, and the insurance company decides the amount of interest. The contract will specify the rate of return. If you keep the premiums paid, then the insurance remains active and accrues value. Premium payments are flexible.

There are two types of universal life insurance coverage. A fixed premium policy gives you cash value, but you cannot make changes to the policy once it is active. A flexible policy allows adjustments. And guaranteed universal life provides a secondary guarantee if premiums continue to be paid.

Universal life insurance is beneficial, and you can benefit from it while you’re alive. You get a good policy, and extra money is earned. The best thing about universal life is the investment option. Interest is tax-deferred, and your beneficiaries receive money when you die.