Benefits of Universal Life Insurance


Life insurance may come in many forms. Once you make the decision that you want to commit to life insurance you may be faced with multiple different options. Universal life insurance is a type of coverage that is relatively new to the insurance market. With that it seems to be on the more complicated side as opposed to traditional life insurance policies like term life insurance.  There are some benefits to universal life insurance for those whose life and needs match.

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 What is Universal Life Insurance?

 Universal Life Insurance is a permanent life insurance policy where it lasts for the entire term of your life and pays a death benefit at time of death to the beneficiary of the policy. In contrast to whole life insurance though, universal life insurance may allow for greater flexibility in premium payments and a potentially higher growth in cash values. If you’d like to learn more about whole life insurance, visit the article “Benefits of Whole Life Insurance.” There are many different types of universal life insurance policies like variable universal life and traditional fixed universal life insurance. But the concept may be the same with some changes to each one. The policyholder may be able to choose to change their monthly premium payment amount and/or change the amount of death benefit during the course of their life. The policyholder may have more control over their policy with universal life insurance.

 Advantages of Universal Life Insurance

 The biggest advantage of universal life insurance may be that the policyholder may have more flexibility in their premium payments and changing the terms of the policy contract. There are many riders that could be added to the policy to make changes as needs and circumstances change. The policy holder may also be able to take out a loan against their policy. This is an option if needed and could allow those to get money that cannot from other sources. This could decrease the death benefit until it is repaid but may be a nice option for a policy that you will be holding for a permanent amount of time.

 What you should do

 Before you make a commitment, especially with a permanent life insurance policy, you typically want to make sure that it could be the right step for you and your beneficiaries. There might be so many options available and universal life insurance could be the right one. The advantages of universal life insurance may be important to keep in mind when deciding what policy to take to help cover your life but the list above is not all inclusive. Communication and clear explanation from your agent and research of multiple insurance companies and what they offer, along with their guidelines could typically be a great help in evaluating your options.

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"Did you know that since 2005 the percentage of U.S. adults without life insurance has nearly doubled?"*