What is Universal life insurance?
Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on his or her individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums. Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly.
- Often more affordable premiums than whole life insurance
- Ability to set the guaranteed number of years you want the policy or set for an entire lifetime
- Options that usually have additional money that can be set aside for long-term financial goals
- Universal life also has cash value options that can help lower your premium
- Flexible timing options of premium payments as well as amount of coverage
- Protects for your clients’ lifetime if needed
- Death benefits that are non-taxable