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Universal Life Insurance

Good Universal Life Insurance, Customer Friendly Coverage


Pondering the temporary nature of life, one can understandably attempt to imagine how the lives of one’s family can be detrimentally affected by his or her death. Outside of the emotional trauma that they will likely experience in the aftermath of your death, there will also likely be financial issues to handle. It is likely that you may have one or more dependents who have come to depend upon your financial support. Universal life insurance is one kind of coverage that can be bought to provide your loved ones with financial death benefits after you die. This is a unique kind of coverage, so it is crucial to understand its inner workings.

How it Works

With a universal life insurance plan, one has the option of choosing the death benefit amounts that you would like your loved ones to enjoy. It is also incumbent upon the policyholder to name his or her beneficiary. With this coverage one can enjoy permanent benefits. The policy term will not expire and its coverage remains in place until the policyholder death, as long as one continues to pay the premiums. Special to universal life coverage, there is also a cash accrual component wherein a part of each monthly premium is allocated to the policy’s cash balance. This balance grows over time as interest accrues along with the monthly premium payments being made. Additionally, one will often have the freedom to withdraw some of the balance or put it toward future premium payments and to adjust the death benefits to better reflect the cash accrual portion of each premium.
The cash value aspect of this coverage could be utilized for one’s children’s college education, to invest or pay down debts, and so on. Some may keep the cash value in the policy as a valuable balance that continues to grow as time goes on.

Big Benefits

As mentioned, there is a myriad of specialized benefits associated with having bought a good universal life insurance policy. For instance, setting the death benefits as one may please (within reason), one can be helped in assessing his or her family’s potential financial needs after death and plan for their future.