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What Is Universal Life Insurance

What is universal life insurance?  This is one of many general life insurance questions that people have.

So you’re thinking about investing in a cheap life insurance policy for your family and you’re wondering about universal life insurance.  Most likely you’ve heard of a term or whole life insurance policy and now you’re interested in finding out more about a universal life insurance policy.  Hopefully this article will shed some light on these affordable policies.

Universal Life Insurance Defined

Universal life insurance is a form of flexible coverage that provides an option of long-term savings through a cash value buildup for the policy holder.  One of the appealing things about universal life insurance is that the premium, saving and death benefit can be changed throughout the life of the policy.  It also differs from whole life insurance by allowing the policyholder the opportunity to use accrued interest to help pay your monthly premium.  These policies can be very appealing because it provides an opportunity to diversify your investments.

Universal Life Insurance vs Whole Life Insurance

When it comes to a universal life insurance, one of the biggest difference from whole or life insurances is you have the opportunity to move money from the insurance component to your savings plan.  If your circumstances change, no worries, your insurance company can realign your funds to better reflect your current condition.

Another great thing is that when you pay extra on your premium, the excess is applied to the cash value of your policy and begins to earn interest.  The premiums and interest rates vary so be sure to check with your life insurance company for more specific figures.

Now to be sure, universal life insurance isn’t for everyone.  You may want to look into term or whole life insurance.  If your not sure which type of policy to go with we would encourage to contact one of our agents who can help you identify which policy best fits yours family.

The great thing is that with our website you can shop and compare quotes online. We work with some of the top providers from around the country.  And the great thing is the only thing we need from you is your zip code. Many of the companies work with offer great no exam life insurance policies.

If you have any questions feel free to contact one of our agents.  They’d be happy to answer and questions you may have.