Universal Life Insurance Protects Your Family
Life insurance comes in a few different forms. Universal life insurance is a policy that builds value and offers tax-deferred benefits. If a policyholder has this kind of insurance policy, the premiums paid into the policy accrue interest. It is much like a life insurance policy and interest bearing savings account rolled into one, which has great benefits for you now and for your family upon your death.
Adding to your financial portfolio is essential and a universal life insurance policy can do just that. You can protect assets and get a minimum rate of return from this type of coverage. You can withdraw funds if needed or can leave the value for your surviving family members to pay medical bills and your funeral costs.
The cash value that is accrued above the premium in invested and the insurance company decides the amount of interest gained. Your insurance contract will lay out the rate of return. As long as the premiums are paid, then the insurance will remain active and continue accruing value. Depending upon the policy that is chosen, premiums will vary.
Not all universal life insurance coverage and policies are the same.
A fixed premium policy gives you cash value, but the policyholder is unable to make any changes to the policy once it becomes active.
A flexible policy will allow for adjustments to the policy.
A quaranteed universal life policy provides a secondary guarantee if premiums continue to be paid.
Universal life insurance has great benefits, including investment. Not only does the policyholder get great life insurance, but extra money can be accrued as well. Interest is tax-deferred on the cash value and it offers your beneficiaries a bit more money in the event of your death.