Universal life insurance is a comprehensive form of life insurance which provides death protection for your entire life, as well as a savings or cash value element. Universal life insurance is paid in premiums that reflect the cash value of your insurance policy. A universal life insurance policy is a great option for those who wish to have greater flexibility in terms of their coverage level in case the need should ever arise.
Universal life insurance has a definite edge over both term and whole life insurance because it offers flexibility in the amount and timing of premium payments. After the initial policy payment, you can decide when and for what amount you would like to pay your premiums. As long as there is enough cash value in your policy to cover the monthly charges, your universal insurance plan will continue. The cash value of your policy even earns an interest rate set by your insurance company.
There is flexibility when it comes to your death benefit options through a universal life insurance policy. You can either receive a level benefit, which is equal to the policy?s original sum amount, or a variable benefit, which is any existing account value on top of the original sum amount. With these choices, you can be sure to create a death benefit plan that is right for you and your family.
A huge benefit of universal life insurance is the ability for the policyholder to increase or decrease the policy face amount. With this level of flexibility, it is easy to always be prepared for possible life changes and to alter your insurance plan accordingly. If you are a person who would benefit from having this flexibility, universal life insurance could be just what you need to give you the greatest peace of mind.