Universal life insurance is a type of permanent life insurance coverage, offering both a death benefit and a cash value component. Your policy will remain effective if you pay your premiums or stay alive. There are three types of coverage: indexed universal life, variable universal life, and guaranteed universal life.
UL allows for you to increase or decrease your payments as your circumstances change. Even though you may eventually have higher premiums to keep coverage, it can be easier to keep your insurance policy current if your earnings are different.
You should remember that this will increase your cash value. If you don't have enough cash, you will need more or your policy may be cancelled.
From the first day, the policy is in effect. UL can provide an income tax-free death benefit to help protect your family's financial well-being. And as long as you keep a positive cash value amount, your coverage can't be canceled.
Universal life insurance offers both a death benefit component and a cash value component. Your policy will still be valid if you continue to live or pay your premiums. There are three types coverage available: Guaranteed universal life, guaranteed universal life and variable universal life.
A UL policy provides insureds with many of their same permanent protection and benefits as wholelife coverage. However, UL policies also offer flexible premiums to allow for variable earnings. The policy may allow you to invest cash value in market-based options. This gives you the possibility of more growth. Universal life has lower guarantees for cash value, but it offers more.