If you've been looking into the various types of life insurance that are available today, you may have stumbled across universal life insurance. Here we will describe what exactly a universal life insurance policy is and what a policy owner can expect from such a policy.
Universal life insurance is a permanent insurance policy in that it will protect the insured and their beneficiaries for the duration of the insured's life. What's unique about universal insurance is that the policy also comes with tax-deferred investment account options. This means that the money you invest in your universal policy that's over and above the amount that's needed to cover the death benefit can be either contributed to investment accounts or used to increase the value of the policy's death benefit. It's your choice.
When you choose to buy universal life, you will want to make sure you talk with your insurance agent to discuss the way in which you would like the the policy to perform; how much will go to covering the death benefit and what will be invested, for instance. You can make the price of a Universal Life policy more affordable by purchasing a guaranteed Universal Life policy. With this type of UL policy the cash value growth will not be your primary goal. The permanent death benefit would be the goal so it could make the monthly premiums cheaper.
There are some people who will be better suited than others to own this type of life insurance policy. Those people include parents and grandparents who would like to up the value of the estate that they leave to their beneficiaries. As well business owners who are looking for a way to protect their business that's also tax efficient and will have the protection for life vs. a certain period of time like a term life policy would offer. There are many other ways a universal insurance policy can be put to work for its owner. These include covering the cost of a funeral or burial, covering any outstanding debts, or even donating to a favorite charity.
When you purchase a term life policy you are buying for a certain length of time. When you buy a universal life policy you are buying a policy to last an entire life time. Think of it as buying vs renting. You would rent a term policy and buy a UL policy.
If you want to compare rates between term life quotes and a guaranteed universal life insurance quotes you can do so on our comparative rater up top. When you go to the home page you can select the options in the quoter for "Level Term Period". Selecting the lifetime option will give you quotes for a universal life policy. Our one of a kind rater will compare UL rates from over 40 companies and show you the rates side by side.
No matter what your reasons are for wanting life insurance, call one of our licensed insurance agent today and determine if universal life insurance is the right type for you. There's no time like now to get the coverage you need.