Universal life insurance
Universal life insurance is a type of permanent life insurance that provides coverage for the policyholder's entire life, as long as premiums are paid. Unlike whole life insurance, which has a fixed premium and death benefit, universal life insurance allows policyholders to adjust their premiums and death benefits over time. The premiums paid into a universal life insurance policy are divided into two components: a cost of insurance component and a savings component. The cost of insurance component covers the mortality risk and other expenses associated with maintaining the policy, while the savings component earns interest and builds cash value over time. The policyholder can choose to increase or decrease their premium payments, subject to certain limits, and can also change the death benefit amount. Additionally, the policyholder may be able to access the cash value of the policy through loans or withdrawals, subject to certain conditions and fees.
Universal life insurance policies are often marketed as a flexible and customizable alternative to traditional life insurance, but they can be complex and require careful consideration before purchasing. It's important to consult with a financial advisor or insurance professional to determine if a universal life insurance policy is appropriate for your needs and goals.
If you will have questions about Universal life insurance, feel free to contact us at 204-807-1705 or [email protected]
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