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Universal Life Insurance


Universal Life (UL) insurance was introduced in the 1980s. This policy has a guaranteed minimum interest rate. Companies normally pay an interest rate between three and four percent. The interest rates change every year. Universal life polices have a flexible premium. Your monthly payment can go up or down. Here are a few more facts about Universal life policies.

Workplace Benefits

First, employers can offer this policy to their employees as a workplace benefit. In fact, the policy cost less for employees when they buy insurance through their employer. The insurance companies give discounts when a group of people are covered by universal life insurance. Also, this type of insurance build cash value for employees.

Who It Is For?

Next, Universal life products vary from company to company. Before you by insurance, confirm that the insurance company and the agent are registed with your state’s insurance department. This policy is for individuals who need permanent life insurance. If your family depends on your income, you should think about buying universal life insurance. It is important to point out that consumers should only buy insurance that they can afford.

How It Works?

Then, this product is market and interest sensitive. Simply put, the rates of return are based on market conditions and interest rates. You have a few options in which you can make payments to the insurance company. In turn, the insurance company will invest the money and pay you interest. The insured gets a death benefit plus the value of the account. For example, you have a $100,000 policy. When you die, your beneficiary will get $100,000. If the account has a value of $50,000. Your beneficiary will receive $150,000.

Different Types of Coverage

Moreover, Universal life has a choice of two kinds of death benefits. Consumers can select Option A UL or Option B UL. Option A has a death benefit. Option B has a death benefit and cash value.

Finally, there are advantages and disadvantages when buying universal
insurance. It is important to find a good insurance agent that will help you select the right policy. Universal insurance protects families when a loved one dies. You can leave funds behind to pay off bills and send your kids to college.