Universal Life Insurance Policies
For many people, a life insurance policy is a great way to make sure their families are not left without income upon any unlikely or untimely demise. While this may be a morbid thing to think about, it is important to be able to discuss it openly as there are many different options available to someone seeking a life insurance policy.
Some forms of life insurance come with the option to set up a savings account that accumulates interest over time. There are two types of insurance plus savings policies: whole life insurance and universal life insurance (UL insurance). Universal life insurance is a more attractive policy to many because the policy holder has the option of using accumulated savings interest to pay part of the monthly premium on their insurance policy.
There are lots of flexibility options in a UL insurance policy. For example, you can take out loans or withdraw money from the account as needed as long as there is enough left in the account to cover monthly deductions. This makes it not only a policy to provide remaining family with income after your death, but also a policy to facilitate life and business planning. An added benefit is that the value of your policy is not taxed as it increases. Your interest accrued on the cash value of the policy is protected by federal tax law.
There are two further options beyond the UL insurance to add a second person to the policy: survivorship and joint. A survivorship policy covers two people and is paid out upon the death of both persons. A joint policy also covers two people, but it is paid out upon the death of either person. This is a more economical option than purchasing two separate policies.
UL insurance is a fantastic option for anyone looking to ensure a good future for their families and to save some money along the way.