index universal life insurance cost

how does a universal life insurance policy work


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.

universal life insurance products


Universal life can be used to obtain a permanent, life insurance policy or build cash value. Premiums can be adjusted to suit your needs. You can increase or decrease the amount of your premiums within the company's limits. The cash value can also be used to make policy loans and withdrawals.

universal life insurance products
universal life events insurance

universal life events insurance


Your policy will still be in effect if you die. However, your beneficiaries will receive only the death benefit. Any funds beyond this amount will remain with the insurance company. A single tax-free payment, as well as monthly or annual installments, is what beneficiaries typically receive. Annuities are an option offered by some insurance companies. This is a contract where the insurer agrees that the beneficiary will receive a one time fee or periodic payments for an agreed period of time.

universal life insurance vs term


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.

universal life option a

universal life option a


With more options than term or even whole life coverage, a UL policy can be complex. The policy needs to be managed: you must determine how much you want to pay for premiums, and with variable UL, you also have to make investment choices. Those variables, along with insurance costs that increase over time, can affect and even detract from your cash value. So you also have to keep an eye on your value balance over time: If it goes down to zero, your premiums could go up, or the policy may lapse.

is universal life insurance a good idea


Variable universal live insurance (VUL), which allows policyholders control how the policy's cash-value portion is invested, lets them choose. Stocks, bonds, and mutual fund options are available. You can also choose multiple accounts to invest.

is universal life insurance a good idea