Explore the Benefits of Universal Life Insurance

Universal life insurance is another type of permanent life insurance. It covers the insured person for the duration of their life as long as premiums are paid on time and other requirements are followed to maintain coverage.

What Are the Benefits of Choosing a Universal Life Insurance Policy?

Universal life insurance policies offer lifelong protection to secure the financial future of your loved ones when you pass away. Other benefits include:

● The ability to withdraw money or borrow against your policy’s cash value
● Interest earned on cash value
● Premium payment flexibility
● Ability to adjust the death benefit

What Should I Know About My Policy’s Cash Value?

With a universal life insurance policy, a portion of your premium payment builds your policy’s cash value each month. Over time, you can withdraw money or borrow against your policy after the money has accumulated to a certain amount. The rules on how and when you can withdraw or borrow money vary based on your insurance company and the specifics of your policy.

Many universal life insurance policyholders don’t realize that policies earn interest with current market rates. While interest rates fluctuate with the market, some companies offer protection with a minimum performance guarantee on your policy.

How Are Universal Life Insurance Premiums Flexible?

As the cash value of your policy builds, you may have the ability to lower or stop paying your premiums for a certain amount of time on your universal life policy. This is helpful if you’re looking to reduce your monthly expenses or cut costs when money becomes tight. Since there can be some negative consequences of flexible payments, talk to your insurance broker to get the details of your policy terms.

Keep in mind if you don’t pay premiums as expected, your policy can lapse. Read through your policy thoroughly and check with your broker for more information.

What Does It Mean to Adjust the Policy’s Death Benefit?

One of the most significant benefits of universal life insurance is its flexibility. This extends to the death benefit. Most insurance companies allow you to increase your death benefit as long as you pass a medical exam. On the contrary, you can also reduce the death benefit to save on the costs of your policy. There are several reasons why policyholders may want to increase the amount of their death benefit.

What Is the Difference Between Universal Life and Whole Life Insurance Policies?

Universal and whole life insurance policies are both permanent life insurance policies. However, the two are slightly different. You can adjust your premium and death benefits over time with a universal life policy. This flexibility suits the needs of policyholders as their financial circumstances change over time.

On the contrary, the premiums and death benefits of whole life policies are fixed for the duration of your policy. Whole life policies also do not accrue any interest on the cash value.

Why Choose a Universal Life Insurance Policy?

If you are looking for life insurance coverage that lasts your entire life, a universal life insurance policy may be the best option for your needs. These policies are also a great way to build tax-deferred savings. If you don’t plan to tap into your cash value, universal life insurance policies can be an excellent option to invest your money for future savings.

How Do I Know What Life Insurance Policy Is Right for Me?

If you’re struggling to decide which life insurance policy is the best fit for your needs, talk to your local insurance broker for help. At Life Insurance by Monique Navarro, we’ve helped countless individuals and families review their personal situations and set long-term goals to secure the financial future for their loved ones.

Contact Us Today for Your Free, No-Obligation Consultation

There are several benefits to choosing our broker for your life insurance needs. Unlike going direct with your life insurance company, our broker works with various insurance companies to find you the best rates and coverage. Monique Navarro is also a field underwriter, offering the most accurate rates without the need to go through a third-party underwriter.

All of our policies also come with living benefits. This means you’ll have access to a certain amount of funds to use if you become terminally ill or injured. If you’re ready to explore your options, we’re here to help. Contact us today to schedule your free consultation and take the first step in securing your family’s financial future.