Universal Life Insurance

Universal Life Insurance is permanent life insurance, offering benefits that make it an interesting option in many situations First, Universal Life insurance offers the potential for lifetime death benefit protection As long as you pay your premiums and keep your policy well funded, your family or business can remain financially protected

Second, Universal Life offers choice and flexibility You have the option to pay more or less in premiums, or increase or decrease your death benefit, depending on your circumstances And third, Universal life policies provide a way for you to set aside money or cash value for future needs When you pay Universal Life premiums a portion of each payment is added to your policy's cash value and grows tax-free There are three types of universal life policies: Fixed, Indexed, and Variable

Each type offers different levels of risk and growth potential Fixed policies are most conservative and do not participate in the market The insurance company guarantees to credit your cash value with a fixed amount of interest, helping protect you against market fluctuation However you give up potential growth for this stability On the opposite end of the spectrum, Variable life insurance offers the greatest cash value growth potential, with market risk

Money from your premiums participates in the market through one or multiple sub-accounts chosen by you Indexed policies fit between fixed and variable life Indexed policies may receive credits based on an underlying index, but do not participate in the market like variable policies do A typical indexed line policy offers similar stability to fixed policies by providing a floor for minimum amount of growth, and a cap or maximum amount of growth that will be credited to the policy's cash value The floor and cap help provide downside protection, but also limit your growth potential

While there are many benefits to universal life insurance, your financial professional can help you consider whether the added for potential lifetime protection makes sense for you Contact your financial professional to explore your options, and review your coverage today

Source: Youtube

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