Universal life insurance provides permanent life insurance protection and access to cash values that grow tax-deferred. A universal life insurance policy has the flexibility to adjust to your changing needs.
In short, it is like combining a term life insurance policy with a tax-deferred interest accumulating savings account. The major advantage of UL is flexibility where you can decide or change the amount of life insurance, frequency of payments, and the protection level of the policy within bounds and so on.
Another main benefit of purchasing a universal life insurance policy is that besides accumulating a tax-deferred savings, one may not have to pay premiums during the entire policy. If money to pay the death benefit and other related costs accumulates in the tax-deferred savings portion of the policy, then premiums may eventually not be required to keep the policy in force.
A Universal Life policy is a flexible way to help protect your loved ones and build tax-deferred cash value.This life insurance offers protection for your family and strategies for leaving a legacy to them and It can also help small business owners with continuation planning. Life insurance has fees and charges associated with it that include costs of insurance that vary based on the insured person’s sex, health and age, and has additional charges for riders that customize a policy to fit your individual needs.
Your policy's cash value earns interest based on a contractually-stated financial index (or a blend of indices), and this growth is tax-deferred. You can access your cash value almost anytime.Keep in mind that as your life changes (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Take care to ensure universal life insurance is suitable for your long-term needs. You should weigh any associated costs before making a purchase.