Universal Life

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Universal life insurance is a combination of term life protection and savings. The savings part is invested in a tax-deferred account earning interest at competitive interest rates. There is great flexibility in this type of policy. The premiums and coverage can be adjusted as the age and income of the policyholder changes. This works great for families of all ages and income status.

The flexible premium and adjustable life insurance makes universal life a very popular death benefit and cash value policy. The death benefit is separated from the accumulation benefit of the policy. As the cash value builds, it is used to pay for the term insurance. Payments can be skipped if there is enough cash value to cover the premium. This option is great if there is an unexpected emergency that drains the budget.

Value of Universal Life Policies

Most policies offer a guaranteed minimum amount for death benefits. Even if the investments of the policy fail, the beneficiary will still receive the minimum. It is possible, however, for the investments to be successful and greatly increase the cash value and paid out benefits of the policy. With this type of policy, it is always possible to increase the payment and benefits. This is a choice many couples make after the kids are gone and college and wedding expenses are out of the way.

The Internet is a great place to look for quotes for universal life policies. Many options and combinations are possible and it pays to compare costs and benefits carefully of each one before making a decision. There are insurance brokers online ready to answer your questions or design a plan that will work for you.

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