Universal Life

Universal Life Insurance Policies

Chicago Insurance Advisors


Information about Universal Life Insurance

Universal life insurance serves a dual purpose. It acts as an insurance policy, but it’s also an investment tool. This policy is flexible because the policyholder can change its terms as their needs change. This type of life insurance is good for people who want life insurance with a bonus.

How it Works

Universal life insurance is for anyone who needs a regular life insurance policy. The difference is that it also provides an investment option, and some people might not need or want that. It’s important to understand the differences between this type of policy and other life insurance policies.

In this policy, premiums are pooled in a cash value fund for the policyholder. The policyholder can adjust their interest and principal amounts and use the interest to pay future premiums. They can also start paying higher premiums and gain more interest on the policy’s cash value. This policy is a cash value investment. If the policyholder cancels the policy, then they could possibly have a large investment.

Benefits

In addition to being good life insurance, the investment option is a good bonus. It’s a flexible policy, and gives policyholders lots of options. Policy information and attributes can be changed to meet the current needs of the policyholder. The cash value of the policy is a benefit, since it can pay premiums and collect interest.

Uses

Universal policy benefits are usually used to pay funeral costs, and to replace lost income for the policyholder’s surviving family. While alive, the policyholder can benefit from the interest gained by the policy. It’s even possible to borrow money from the policy if available.



 

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