Universal Life Insurance

What you need That to know About Universal Insurance

                 Along with providing a death benefit, Universal life insurance also incorporates a savings vehicle. In short, it is like combining a term life insurance Policy With A Tax Deferred interest accumulating saving account. 

One benefit of purchasing a universal life insurance policy is that besides accumulating a-tax deferred saving, 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 saving portion of the policy, Then premiums may eventually not be required to keep the policy in force.

So who could benefit from a universal life policy? Since a universal life policy is an investment vehicle along with a life insurance policy, only people who feel they need life insurance into their 70's would benefit from a universal life policy.

This would give the savings portion enough time to possibly accumulate into an investment. Most persons will not need life insurance that late in life, and in the case life insurance is not needed that late, it may be more beneficial to purchase a term life insurance policy and plan a proper retirement savings account such as a 401K or annuity.

If a universal policy looks right for you there are a few important points to remember. First, make sure you plan to have the policy long term since you will need to have the policy in force at least 15 years to be eligible for any return of the policy. second, make sure you have a knowledgeable insurance agent to review your other options as term and whole life insurance.