Universal Life Insurance - Permanent Protection for Your Loved Ones
Universal life insurance provides your loved ones with protection against financial heartache in the event of your death.
In addition to a death benefit, universal life insurance provides a great amount of flexibility, giving you savings & investment options, and premium flexibility.
It also combines the concept of pure life insurance and the concept of a savings account that earns interest.
Put simply, when your premium is paid each month, part of it pays for the life insurance, part of it goes toward administration costs, and the rest of it is put into a savings account.
The money that is deposited into the savings portion of the policy will earn interest. There is a usually a guaranteed minimum interest rate for each policy, but you can earn more dependent on interest rates.
Universal life insurance policies can be quite flexible in the following ways:
- You can borrow from the cash value (usually there's a withdrawal fee).
- If you miss a payment, your life insurance portion of the premium will be paid from the available cash value.
- If you want to pay more or less some months, you can.
However, if it gets to a point where your policy premium payments don't cover the cost of the life insurance, your policy can lapse.
This is why it's important to work with an insurance professional to decide if universal life insurance is right for you. Get a quote right now!
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