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Universal Life Insurance

Universal Life Insurance

Life insurance is a policy that pays a benefit to your family when you pass away. It actually pays the benefit to the person you name as your beneficiary. The person you name can be a family member or someone else. This is one way to provide for your spouse, kids and other family members once you are gone. Universal life insurance is different from basic life insurance because it can accrue value.

When you make a premium payment, a portion is held in an interest-bearing account. The interest rate is typically better than that provided by a savings account. The balance can grow to a sizable amount, and then you can borrow against these funds. Some people use this type of life insurance for retirement planning, saving for investments and more. You could even use the money to fund your child’s college education. Because of this interest feature, the total premium may be higher than other alternative life insurance policies. You can adjust the amount of your policy and it might lower your premium.

It is best to discuss your life insurance options with an insurance agent. Universal life insurance may or may not be the best option for you. Also, your health and other factors will affect your rate and eligibility. The healthier you are, the lower your rate. The insurance company can also deny you coverage if they think you are a big risk.






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