types of universal life insurance

accumulator universal life insurance


Universal life insurance, a type of permanent insurance coverage, offers both a mortality benefit and a cash worth component. Your policy will not expire if you don't pay your premiums, or if there is no death benefit. There are three types, guaranteed universal, guaranteed universal, and variable universal.


Cash value will increase over time as you continue to pay your universal life insurance premiums. Depending on which insurer you choose, you may have to make an upfront premium payment or pay a fixed monthly premium.

variable universal life insurance definition


Your funds will continue experiencing income-tax-free growth, as long your cash value does not change. If your investments do not perform well, the accumulated value of cash could decrease. However, you'll need to pay taxes once the money is withdrawn and your death benefit might decrease. You can keep all or most of the accumulated cash value in case you want to terminate your policy.

variable universal life insurance definition
aaa universal life insurance

aaa universal life insurance


As you keep paying your premiums on your universal life insurance policy, you'll experience cash value growth over time. Depending on the insurer and the policy you ultimately go with, you may need to pay one upfront premium payment or a fixed monthly premium.

variable life insurance and universal life insurance are very similar


We'll explain what you need to know about universal life insurance and break down the different types of universal life policies. Ensure you're working with a trusted financial advisor or experienced life insurance agent when considering these policies. They can be complex.

universal life insurance policies

universal life insurance policies


Universal life insurance, a type of permanent insurance, is one form. A universal policy provides coverage for life. As long as the insured pays premiums and meets any other conditions, they are covered. Universal life insurance, which is similar to many permanent life policies, offers both a savings component called "cash value" and lifelong protection. After your death, the policy's "cash value" is converted into a death benefit that is paid to your beneficiaries.

fixed universal life insurance


Remember that doing so will eat up your cash value – if there isn't enough, you will need to make up the difference, or your policy will lapse.

fixed universal life insurance