iQuanti: If you've been looking for a life insurance policy that meets your needs and offers some flexibility, universal life insurance may be the answer. As a form of permanent life insurance, universal life insurance offers many benefits that you can take advantage of. If you'd like to know what these benefits are, this guide should give you everything you need to know before choosing a policy to apply for.
What is Universal Life Insurance?
Before getting into the various benefits of universal life insurance, you should know what universal life insurance is. These policies are made up of two parts, the first involving the insurance you receive. This insurance is the death benefit that's paid out when you die.
The second portion of universal life insurance involves the cash value aspect of the policy. When making a monthly payment for your insurance, the insurance provider will remove the cost of your insurance while putting the remainder of the payment into the cash value account that's been made for you.
Three Advantages of Seeking Universal Life Insurance
You might find universal life insurance to be ideal for you because of its many benefits. Three of the primary benefits are detailed below, which include everything from flexible death benefits to the potential to increase your cash value.
1. Flexible Death Benefits
The death benefits your family receives with a universal policy are flexible. With this policy, you can raise these benefits if you require more in the future. Keep in mind, however, that a medical exam will most likely be needed for additional coverage. If you've had your policy for several years, you can also reduce your monthly premiums by decreasing your death benefit.
2. Variable and Flexible Premiums
The monthly premiums you pay can be really flexible with a universal life insurance policy. You can also change the frequency and size of your payments and can choose to pay more than the set premium that are due every month. Any money you add to your payment will go towards your cash account, which increases its overall value.
Paying less than your monthly premium payment can be done if you want the remaining amount you owe to be taken from your cash value account. If you choose this option, it's important to have enough money in your cash value account to cover the difference. Otherwise, your insurance policy could lapse.
3. Potential to Increase in Value
Another benefit is that you can effectively increase the amount of money in your cash value account. These funds earn interest at a specific rate set by your insurance provider. The interest you earn is added to your cash value account.
The Bottom Line
Universal life insurance allows you to have life insurance with benefits like adjustable premiums, flexible death benefits, and interest rate payments. As a form of permanent life insurance, you'll be able to keep this policy until you pass away as long as you continue making monthly payments. Contact a life insurance agent today to get an instant quote on the many life insurance policies available to you.
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Original Source: Three Benefits of Universal Life Insurance
