Universal Life Insurance

Universal Life Insurance Coverage

Universal life insurance allows you to leave a financial benefit for your family when you pass on. Not only does this coverage allow you to care for your family, but you also have access to the accumulated cash value of the policy. An important aspect of universal life coverage is that it runs throughout your life. Unlike some other policies, it does not expire once you reach a certain age.

The benefits mentioned above are a few reasons why universal life is popular. Insurers break down the premiums into the cost of insurance and the savings component. You can adjust your premiums and coverage amounts to meet your budgeting needs. Additionally, you can skip paying premiums as long as the accumulated cash value is enough to cover it.

What is the Cash Value?

The cash value is a tax-deferred amount that the policy accumulates every month and earns interests over time. You can access some of the cash at any time without affecting the death benefit. You can borrow against the cash value and repay the loan over time, but if you don’t repay the loan it will reduce the total death benefit.

Universal life insurance helps provide income that your family can use to pay expenses. It also allows you to benefit from the policy while you are still alive.