Universal Life Insurance
Candlefocus EditorUniversal life insurance is considered "permanent" because it provides coverage throughout the life of the insured. With UL, the customer can make regular premium payments, provide a lump sum payment or a combination of both. Flexibility is one of the greatest advantages of UL – customers can adjust the death benefit, premium payments, and cash value amounts as needed.
The cash value of a universal life insurance policy is easily accessible to the policyholder. Continuous premium payments to a UL policy generate cash value, which means UL policyholders can borrow against their policy's cash value for various reasons. Additionally, because of the way the cash value build-up works, a policy’s death benefit is secured regardless of how the policy’s cash value is used.
Unlike term life insurance, universal life insurance has the potential to provide policyholders with greater financial benefits after the policy's expiration, including the ability to augment retirement. For those looking to bring protection, estate planning, and a certain amount of cash reaping, UL coverage can offer tremendous potential benefits.
Universal life policies are also beneficial for people who want the freedom to adjust their death benefit and premium payments. Policyholders can lower or raise their death benefit as they wish, while premiums are easy to adjust as well.
Overall, UL is an extremely versatile form of life insurance that enables customers to make choices about their coverage and potential returns on their investments. Immediate cash access as well as protection for the policyholder’s beneficiaries are two of UL's notable features. UL is one of the most customizable life insurance policies available and is a great option for those looking for a financially sound insurance coverage solution.