Universal Life Insurance

For some people, Universal Life Insurance provides the flexibility they want. Like whole life insurance, a universal life policy builds cash value. However, universal life coverage offers three valuable features in addition to the cash value build-up:

Flexible Premiums – Not only can you choose the premium you want to pay (within the minimum needed to keep the policy in force and the maximum allowable), you can change the amount at any time.

Flexible Death Benefit – Universal life insurance allows you the flexibility to increase or decrease your life insurance death benefit within the same policy. As your income and assets increase, your coverage can be increased to protect them without having to buy another policy to supplement your original one.

Guaranteed Minimum Interest Rate on Cash Value – The policy's accumulation value comes from the timely payment of premiums over the life of the contract. The monthly cost of insurance, policy loads and administration fees are deducted from this account. The remaining cash value accumulates, tax-deferred, at a current interest rate. The interest rate is guaranteed not to fall below a minimum rate as described in the policy.

There are a lot of things you can do with Universal Life Insurance. For instance, there’s a type of policy called an Indexed Universal Life policy. It has the guaranteed features of life insurance and the interest rates are credited based on stock indices like the S&P 500, for instance. If you want to talk about the details of universal life insurance, the best thing to do is to contact a licensed insurance advisor.