Universal Life Insurance
Introduction
A universal life insurance policy combines permanent life insurance coverage with investment features. The premiums for these types of policies are flexible, meaning that you can increase or decrease the amount of your premium within a given range. The interest rate credited to the cash value of a universal life insurance policy is guaranteed and non-guaranteed.
A universal life insurance policy combines permanent life insurance coverage with investment features.
Universal life insurance is a hybrid between permanent life insurance and traditional investment products. It offers the best of both worlds, providing protection against financial hardship while allowing your money to grow over time through tax-deferred investment growth.
If you’re looking for an all-in-one product that can give you peace of mind and help protect your family from financial hardship should something happen to you, then universal life insurance may be the right choice for you.
The premiums for these types of policies are flexible, meaning that you can increase or decrease the amount of your premium within a given range.
The insurance company will set up a range of amounts for you to pay, but you can adjust your premium within that range. For example, if your policy is $500 per month and the maximum premium range is $300 to $600, then your monthly premiums can be any amount within those prescribed limits. You may choose to increase or decrease your payment by $50 each month.
One reason why it’s good to have this option available is because some people have fluctuating incomes—such as entrepreneurs or freelancers who might not make enough money in one month but then earn more than their usual income level in another month. This way they don’t have to worry about paying an exorbitant amount on their health insurance policy because they were unable to find any work for a few months and now need coverage again.
The interest rate credited to the cash value of a universal life insurance policy is guaranteed and non-guaranteed.
The interest rate credited to the cash value of a universal life insurance policy is guaranteed and non-guaranteed. The interest rate is guaranteed if you choose to keep the contract in force.
Universal life insurance gives you flexibility in terms of premium payments and the chance to earn interest on your cash value.
Universal life insurance gives you flexibility in terms of premium payments and the chance to earn interest on your cash value. Because universal life insurance policies are designed to keep pace with inflation, you can choose to increase or decrease the amount of your premium within a given range. The range may be as small as 1% or as large as 20%, depending on your policy.
In addition to being able to control how much you pay for coverage each month, universal life insurance also allows for flexible withdrawals from the cash value portion of your policy (except in states that require minimum withdrawals). You can use this money at any time without paying any penalties or taxes on it.
Conclusion
There are many things to consider when purchasing a universal life insurance policy, and it’s important that you understand what you’re getting into before making any decision. If you have questions, don’t hesitate to ask your agent or financial advisor for advice—they will be able to help guide you through this process.
