“Why Universal Life Insurance May be Right for You”
Life insurance is incredibly important, because it gives you and your family peace of mind.
While we like to believe it would never happen to us, the reality is that unexpected (and uncontrollable) events can leave you unable to provide for your loved ones. In the event of your unexpected passing, a life insurance policy will provide your family with income to help pay for final expenses, cover the mortgage, or provide future college funds.
But all life insurance policies are not the same, and choosing the right policy for your situation can be difficult.
Universal Life Insurance
A universal life insurance policy is the best option for those who want long-term protection for their loved ones while recognizing the need for flexibility. This policy, like the whole life policy, is a permanent life insurance policy — it coverage lasts your entire lifetime. However, unlike the whole life policy, your premium payment amount (as well as your coverage level) is not set in stone; you can adjust both the amount and the timing of payments as needed.
Advantages of Universal Policies
Universal life insurance policies often include other benefits, including the following:
- Access to the Cash Value — Like whole life policies, universal policies give access to the policy’s cash value through taking out loans and the ability to withdraw from the policy’s cash value. However, withdrawing cash and taking loans do reduce the total death benefit.
- Greater Flexibility — In addition to flexibility with the payments, universal life policies offer extra add-ons, which provide extra long-term benefits for your spouse and/or children.
- Tax Advantages — As with whole life policies, the policy’s death benefits are usually not subject to federal and state income taxes, increasing the amount your beneficiaries receive. Second, the policy’s annual cash value gains are not taxed.
Universal Policy Options
We offer various types of universal life insurance policies including:
- Indexed Universal Life — This policy gives you higher dividends than other universal policies, because it goes along with market-based index funds.
- Current Assumption Universal Life — This low-risk policy has a cash value that grows based on the current interest rate determined by the insurance company. It is usually used to plan for future retirement or education.
- No-Lapse Guarantee Universal Life — This policy is guaranteed to pay the full death benefit, without regard to its cash value.
- Survivorship Universal Life — This policy insures two people and pays out when the second passes away.
Purchasing a universal life insurance policy is an important step towards ensuring that your loved ones are always taken care of. If you would like to purchase a universal life insurance policy, contact us today!