The key thing to know about universal life insurance is that it is designed to be flexible. Universal life is considered to be permanent insurance like whole life but you are able to pay an adjustable premium or even no premium so long as the policy has enough cash value to support it. However with more freedom comes more responsibility and if you’re not careful your universal life policy can lapse if it isn’t maintained properly. There are a wide variety of universal life insurance policies in the market today including, traditional universal life, guaranteed universal life, indexed universal life, and variable universal life. It is important to work with an agent who understands and can explain how each type works.
Universal life is a good fit for people planning a legacy, funeral expenses, or estate costs. The flexible nature of the premium might make it ideal for people with variable income or who have big expenses in the near future. Business owners looking for ways to save for future business expansion, and individuals saving for retirement also might be interested in universal life because of the opportunity to accumulate cash value inside of the policy.
People who should consider universal life insurance are those who want the option of having permanent protection, who like having flexibility in their premium payments, or are interested in alternative savings strategies for their business or retirement.
Some things you may want to take into consideration when you’re thinking about buying universal life insurance are:
How much life insurance do I need?
How does my policy earn interest on its cash value?
How can I access my cash value in the future and what impact does it have on my coverage amount?
Can I make changes to the policy in the future if my needs change?
Are there any optional riders available that I could benefit from?
What is the financial rating of the life insurance company?
If you’re unsure how to get started a great first step is to contact your local independent insurance agency – Stolly Insurance. Our team of licensed and experienced agents will help you determine if universal life insurance is the right fit for your situation. Call us today toll free at 1-800-686-2147.
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