Universal Life Insurance: Expanding Your Options
None of us likes to think about our own mortality. But our loved ones mean the world to us, so we should prepare them for life in our absence. And life insurance is the best way to do that.
At InsureMe, we'd like to help you protect your family. That's why, in one quick and easy step, we connect you to agents on our network who are local to you. No picking up the phone or surfing the web is required—just a few minutes and an internet connection is all you need.
Fill out a quote application today, and look out for your loved ones and their future tomorrow. It's easy with InsureMe helping you!
Universal Life: What's Behind It All
Universal life insurance provides death protection for those you care about most, while giving you multiple investment and premium options as your lifestyle and needs change.
Here's how it works: When you purchase a universal life insurance policy, your insurer places a portion of each month's premium payments, minus the cost of insurance (COI), into an interest-bearing account. Month after month, this "pot" continues to grow, providing monies you may borrow against or cash in.
With a universal life policy, your premiums are flexible. That means that, if for some reason you can't make a payment, that month's premium is taken from the account's accrued cash value. Your benefits are adjustable and your policy is permanent, which means you're insured for life.
When you pass away, your designated beneficiary or beneficiaries get whatever cash value remains in your account.
Is Universal Life Insurance Right for You?
As with any other type of life insurance, universal life has its advantages and drawbacks. Some of them include:
Advantages | Drawbacks |
Flexible premiums, adjustable benefits | Policy lapses if cash value or premium payments are insufficient to cover the cost of insurance |
Builds cash value, provides a stable investment option | Potential for growth dependent on interest rates |
Full disclosure of expenses, charges and cost of insurance | Risk for maintenance of death benefits shifts partially to the insured |
As implied above, the flexibility offered by universal life insurance can be of great value. It offers you the ability to pay less when your budget is stressed, borrowing from your own account if you need to, and pay more when you have extra money to contribute.
If you choose to withdraw money to apply toward other expenses, you pay no interest charges as you would with a whole life policy (though a withdrawal fee may apply).
Although universal life insurance is a type of permanent protection, its premiums are not guaranteed. So to decide if this kind of policy is right for you, talk to a knowledgeable life insurance agent who can advise you further on the risks involved.
Consider Your Options
Buying life insurance protects your loved ones, so it just makes sense. But universal life insurance gives you more options to help you live now.
Don't leave your loved ones unprotected or live day by day worrying if you'll have what you need to make it through. Consider the security, flexibility and investment options provided by a universal life insurance policy. Then contact InsureMe, so we can help you find the plan you need.
