UNIVERSAL LIFE Insurance – Customer-friendly
What is Universal Life Insurance?
This is a special form of life insurance that appeals to adults of working age. In many cases, an employer can partially contribute to the funds that are created in the names of employees. This type of life insurance can earn interest on funds that are readily available for withdrawal for personal use.
Who it is For
This insurance is ideally designed for adults who have spouses and children. Such a policy can provide significant financial benefits to loved ones especially in difficult times. Upon reaching retirement age, people who have this insurance often adjust their policy because of the change in employment. In general, a life insurance with a universal clause is an investment that appeals mostly to adults of working age but not the elderly.
How it Works
A policy holder must pay a minimum premium that depends on how an account is set up. Funds from the insurance policy are also available for withdrawal if there’s a need to pay for some major personal expenses. Ultimately, the premiums and deductions depend on how money is used in the long term for savings and spending. The savings in this life insurance plan may qualify for tax exemptions. Similarly, the death benefits that are paid to a beneficiary also don’t get taxed as an income.
Different Types of Coverage in Existence
With this life insurance, a death benefit is available to a beneficiary when a policy holder passes away. Spouses and family members of the policy holder can receive equal or unequal amounts from the insurance fund. This insurance also allows customers to take out loans for various uses such as paying for higher education.
A life insurance with universal coverage can yield plenty of funds during financial hardships. This insurance can be used to pay for major medical expenses in times of illness. Such a policy is also useful in covering some unexpected personal expenses such as legal defense, long-distance travel to relatives and repairs of vehicles. It’s even possible to use such a life insurance plan to partially for college tuition, mortgages and loans.