Universal life insurance, also known as adjustable life insurance, is a type of permanent life insurance that combines death benefit protection with a flexible premium and savings component. Universal Life Insurance provides long-term protection for the policyholder’s beneficiaries and offers the insured more control over their policy and the cash value component.
Some specific features of universal life insurance include:
- Death benefit: This is the amount of money the company will pay to the policy’s beneficiaries upon the policyholder’s death.
- Cash value: This is the savings component of a universal life insurance policy, which accumulates over time and can be accessed by the policyholder through policy loans or withdrawals.
- Flexible premiums: Universal life insurance allows policyholders to adjust their premiums within certain limits, depending on their financial situation. Adjustable premium means that policyholders can pay more or less depending on their needs and budget.
- Flexible death benefit: Some universal life insurance policies allow policyholders to adjust their death benefit within certain limits, depending on their needs. Flexible death benefits can be helpful if the policyholder’s insurance needs change over time.
Universal life insurance is a good choice for individuals who want long-term protection for their loved ones and more control over their policy and the cash value component. It’s vital for individuals to carefully consider their insurance needs and choose a policy that meets their needs and budget. A reputable insurance broker or agent can help individuals determine the coverage they need and find a policy that meets their needs and budget.