Universal Life Insurance: Affordable and Permanent
In addition to whole e life insurance which gives lifetime insurance guarantee. Universal life insurance also provides permanent life insurance protection for family. In general, this type of life insurance offers two kinds of solution for solving financial problems. They are divided into two such as permanent insurance protection and investment options. There are so many options that you can choose such as adjusting the needs, and also opportunity to change the protection level.
How It Works
Simply, the client chooses the death guaranteed death benefit which is later paid to the beneficiaries. Then the payments will all be deposited in policy fund. Next, if you deposit more than what is required for paying the insurance, the rest can be placed on investment or for increasing the death benefit value.
This Life insurance offers a wide variety of advantages such as:
- Lower cost of life insurance compared to other life insurance services
- Provides cash value with low interest rate
- Clients are able to adjust the death benefits along with the needs change.
- Permanent , lifetime insurance which can be accumulated into cash value.
After accumulating the cash value, you will be able to fund any financial problems such as child’s education fee, mortgage, debt payment, and for other accidental financial needs.
Typical Uses Universal Life
Along with the wide variety of advantages offered by Universal Life Insurance, the uses of this life insurance are based on prevalent needs which usually become the most needs done by people. The uses such as;
- Loans: Urgent needs may come when we are not very prepared for covering financial problem. Any kinds of urgent needs always end with a solution by proposing for a loan. It might be for various purposes such as child education fee, tuition fee, and etc.
- Final expenses for funeral fee, and for health care
- Mortgage or real estate: this life insurance really works for mortgage completion and fulfillment. It can guarantee mortgage coverage.
- Withdrawal: each client or policy holder has right to redeem a cash from cash value
- Besides, this life insurance can help maintaining family’s funding from someone’s death which takes a lot of money.
If you are having a great social soul, you might be planning to conduct a charity. Using this life insurance, you will be able to pass some amount of money for charity or for other events involving foundation or social organization.