Universal Life Insurance


Universal Life Insurance Policies

Chicago Insurance Advisors

When you make the decision to purchase a new life insurance policy, you have the option to purchase universal life coverage. In some cases, a universal policy may be included as workplace benefits offered by an employer. Before you make the decision about whether to purchase this type of coverage, you may need to learn more about what it is.

A Unique Type Of Coverage

A universal life insurance policy offers your named beneficiaries death benefits after your passing. This is among the main reasons why this type of coverage is purchased, but it also offers additional benefits that other similar types of policies do not offer. A portion of your premium for universal life will be allocated to a cash accumulation fund. The balance of your fund will increase over time, and it will accumulate interest as well. In this way, this type of policy is generally considered to be an investment.

What You Need To Know About Universal Coverage

Universal coverage is not the most affordable type of life policy, but it offers true benefits that you may enjoy. In addition to the death benefits for your beneficiaries, the cash accumulation benefit can be used to help you fund your retirement, pay for a child's college education, purchase a home or achieve other plans. With each premium payment that you make, you will enjoy the benefit of increasing the cash balance of your policy. This may be withdrawn at any time, or it may continue to grow for you over the years. Because of the added cost of the premium with a universal policy, this type of coverage is most beneficial to those who want to use their insurance as a means to accumulate a financial reserve.

Buying a universal policy can be a great investment decision and life planning effort, but it is not suitable for everyone. If you have been thinking about purchasing coverage or if your employer offers it as workplace benefits, you may consider how the death benefits and cash fund can be used to benefit you and your loved ones over the years.

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