Universal Life Insurance


What is Universal Life Insurance Policy?

Universal life insurance is a type of permanent life insurance with flexible premiums and flexible death benefits. With a universal life policy, the insured person can have life insurance coverage the duration of their life as long as they pay premiums or have accumulated the cash value needed to fulfill the requirements of their policy to maintain coverage.insurance.

Universal Life Insurance

What are some of the features of universal life insurance Policy?

Universal life insurance is permanent life insurance coverage that is different from whole life because it combines the features of term life insurance with cash value. This gives the policy owner flexibility in the way they pay premiums as well as flexibility to adjust death benefits. Other features include:

    • A policy owner can withdraw or borrow against the cash value
    • Loans may not have to be repaid
    • The cash value earns interest and the amount is based on the contract
    • The cash value grows in a tax efficient environment
    • The death benefit is income tax free
    • Optional benefits include waiver of premium, waiver of deductions, guaranteed increases, long-term care benefits and critical illness benefits.

A Whole Life Insurance Policy Contract Can Be Structured As a:

Straight Universal Life Insurance Coverage provides death benefit protection and invest a policy’s cash values into the issuing life insurance company’s “general account.

Variable Universal Life Insurance provides death benefit coverage and invests a policy’s cash value into various mutual fund like accounts that give the potential for additional gains above those of straight universal life insurance.

Joint Universal Life Insurance is used as an estate planning tool and provides death benefit proceeds after the death of two insured people.

Equity Indexed Universal Life Insurance invests policy cash values into an insurance companies “general account” but is credited to the policy owner based on the performance of a named stock index

Guaranteed Universal Life Insurance provides death benefit protection as long as the required premium is paid even if the cash value runs out.