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Universal Life Insurance

Life insurance is important for anyone who doesn’t want their death to burden anyone else. There are different types of life insurance, but universal coverage is the most flexible.

Unlike other forms of life insurance, this insurance does not expire. It offers benefits for a lifetime. The policy never expires as long as the policyholder is alive. This policy’s flexibility comes from the fact that policyholders can raise or lower premiums or coverage amounts. Other forms of life insurance don’t have that benefit. Universal life insurance coverage is attractive to many employees. With increasing costs associated with medical care, the benefits of universal life insurance are becoming more important.

Anyone can benefit from universal life insurance. It all depends on what they want for the future and for their family once they’re gone.

What Is Universal Life Insurance?

This type of life insurance is considered a permanent form of coverage that offers benefits for a lifetime. This type of policy is typically considered flexible, and allows the insured to raise or lower premiums or coverage amounts throughout the lifetime of the policy. This type of coverage is a core component of most workplace benefit programs, as it provides employees with necessary family protection.

Who Benefits from Universal Life?

Universal policies are preferable for people who want tax advantages. A universal policy is a cash-value plan, as the plan usually involves tax-deferred or non-taxed savings. Older people with younger families often choose this type of policy. The reason is because older people with young children want to make sure they’re protected should a death occur.

How it Works

Universal life insurance pairs a death benefit with a savings component. A portion of the premium is applied to the savings component, and later more of the premium goes to pay for insurance coverage. This is important because the policy is actually allowing the policyholder to accrue wealth. The policyholder pays the premium and part of the payment goes toward a tax-deferred savings account. The policyholder can access the cash or cash out at some point.

Major Benefits

Additional benefits of a universal life insurance policy include:

-Flexibility

-Potential access to cash value

-Guaranteed death benefit

-Tax-deferred savings

Universal policies are beneficial for individuals looking for tax advantages. They prefer policies that have cash-value, as these plans involve tax-deferred or non-taxed savings.






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