Conley & Conley Insurance Solutions

3 Benefits of Universal Life Insurance

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A wide range of life insurance options exist. Those options can become overwhelming. It is best for individuals to have a one-on-one conversation with your agent to determine which form fits their goals best. Take into consideration universal life insurance. How can it work for you? Here is what to consider about this particular type of coverage.

Knowing the Benefits 


Take the time to consider universal life insurance carefully. When you do, you will learn there are actually several forms of it. From a general perspective, these are a few of the benefits those policies may offer to you. 


#1: They Offer Flexible Premiums 

Premiums are the costs you pay for the policy. You want these to be as low as possible. However, you also have to consider whether the premiums will change throughout the life of the policy (which is common) as well as how much. Universal life insurance premiums are lower during periods of high interest rates. During these times, whole life insurance costs are likely to be higher even for the same amount of coverage. 


#2: They Build Cash Value 

Unlike term life insurance policies, universal life policies build cash value. That means your payment goes to the death benefit along with the value of your policy right now.  

This value is important. It may mean you can borrow from the policy from time-to-time. It means that, if you cash in your policy, you may get some funds back. Keep in mind that limitations may apply to some forms of universal life insurance. 


#3: You May Be Able to Supplement Your Retirement with It 

Most forms of universal life insurance become very solid investments. Over time, some of those investment increases can be accessible to you. For example, you make payments towards your policy for years. The value of the policy grows because the underlying investments do well.  


When you reach retirement, you may be able to tap into those funds. This allows you to have an income from your policy during your life to pay for your life expenses. 


Universal life insurance is not right for everyone. However, it is important for you to consider all of the options available to you. Talk to your life insurance provider. Gain insight into how well this type of policy fits your goals both during your lifetime as well as after death. For many, it is an excellent solution.  

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