Universal Life Insurance
Universal life insurance, also known as Flexible Premium Adjustable Life Insurance, is a form of permanent life policy that offers more flexibility. This policy offers protection for your whole life, not just a fixed term. As with whole life, the universal life insurance policy invests a portion of your premiums in an interest accumulating saving account. The advantage is that you will be able to use these savings to pay premiums during the entire policy.
Universal life insurance is characterized by flexibility in access to cash value, death benefits and premiums. Unlike with traditional whole life insurance policies, here the owner can pay less than the billed premiums, billed premiums, more than the billed premiums or no premium. This type of policy unlocks the connection between cash value, face amount and premium. Our needs change with time and universal life insurance allows policy holders to adjust the death benefit when necessary. Universal life insurance policies feature three premiums: maximum premium, target premiums and minimum premiums.
Keep in mind that policy holders need to have the policy in force for at least 15 years to obtain return. An experienced insurance agent can help you review all the options available and help you make the right decision.