If you are seeking an insurance product that protects you for your entire life and offers an attractive savings component, then a universal life insurance policy may be the product you need. With this type of policy, part of every premium payment you make is saved in a cash value account and this money can earn investment income over time.
Flexibility is one of the key features of a universal life insurance policy. There are three important areas of flexibility to remember with a universal life insurance policy. The first is the amount you pay for your premiums each month. If you want to pay less, you can utilize some of the cash value to offset premium costs. If you would prefer a higher policy value, you can change that too. Finally, if you want to make changes in how your cash value is invested, that can be changed as well.
The flexible options help you to tailor your life insurance expenditures in a way that fits your needs and as people mature, their needs and their ability to purchase more coverage or invest differently can also change. This is why a universal life insurance policy is so advantageous to many people.
A universal life insurance policy has the same characteristics of a whole life insurance policy in that it is available to you for your entire life. This means you will always have life insurance available to you as long as your premiums continue to be paid. This sharply contrasts with a term life insurance policy. With that type of coverage, you are only insured for a predetermined period. Once the specified term ends, your coverage ceases.
As your family starts out, its needs can change from minimal to significant in quite a hurry. Likewise, as you near retirement, your life insurance needs may change again once your dependents are on their own and supporting themselves. Everyone has different life insurance needs and these needs change throughout your life. Why not purchase a policy that can be as flexible as your own life?