Universal Life Insurance

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What is Universal Life Insurance?

Universal life insurance is an alternative to explore if you’re searching for a plan that will give you flexible lifetime coverage. Universal life is a form of permanent insurance that includes an investment savings component and has a low cost similar to term life insurance.

How do I utilize the benefits of Universal Life Insurance?

Withdrawals or policy loans are two ways to get money out of the cash value component. If you die, the company will deduct the amount of any withdrawals or outstanding debts from the payout to your beneficiaries. You can add a number of riders to your universal life plan.

Riders are a technique to provide extra coverage and benefits at a reduced additional expense. Riders may include critical illness, disability, term insurance, accidental death, premium waiver, and others as the insurance company may provide.

You can get lifelong protection with universal life insurance and accumulate cash value. Universal life insurance policies include a cash value component that can be used to accumulate savings. You have the option to adjust your premium payments and death benefit.

Experior Financial Associates are well informed with this type of insurance policy content. As long as the premiums are paid, it can protect you for the rest of your life.

Benefits of Universal Life Insurance

Protection for the rest of your life

Universal life insurance does not have a set term and offers your beneficiaries perpetual, life-long financial security. Your coverage cannot be canceled as long as the account is in good standing (premiums are paid) and has a positive cash value. You’re insured for life with universal life insurance, whether your health declines or not, and the tax-free death benefit given to your family is assured.

Remittance can be made through the payment schedule

Unlike a whole life policy that has a set premium payment that never varies, A universal life insurance policy allows you to adjust your payments as needed within the policy’s limits. Paying less now may force you to pay a higher cost in the future to keep your coverage, but having more flexibility can make keeping your insurance in force easier over time.

Universal Life has an income tax advantage

This is because interest money accumulated in the account is tax-deferred. Tax implications will occur when money is withdrawn from the policy. It’s a good idea to consult your tax and financial associates when making changes to the values in your Universal Life policy.

Money can be taken

Generally, you can borrow from the cash value of your insurance tax-free. If you die before the loan is repaid, the outstanding amount will be deducted from your death benefit. If you wish to surrender the policy you will get a cash surrender value after any surrender charges are deducted. You must remember that there might be tax implications.

Why should you purchase Universal Life Insurance with Experior Financial Group?

When contemplating these products, make sure you’re working with a reputable insurance associate because purchasing a policy can be complicated. Experior Financial Group is a reputable company with knowledgeable Associates that can deliver a life insurance quote that meets the needs of the client. Our associates are knowledgeable in insurance costs and intricacies of the policy and will assist clients with market value adjustments and cancellation charges. They will explain the content of the insurance policy that you choose and assist you with your financial plan. Our agents work with the best insurance companies after analyzing the market performance of the industry.

Insurance Brokers FAQ

Is a Universal Life insurance policy a wise investment?

Universal Life insurance is a great combination of insurance and investment rather than having them separate as an investment plan and insurance plan. When it comes to insurance, it is protection first and you get the other added value of investments to grow tax-deferred and at death, benefits are tax-free. The protection provides benefits for your loved ones and provides options on the premiums to take care of permanent needs when death occurs. Another added advantage is the ability to grow cash value and then it may be used to supplement your retirement income. Experior Financial Group will help clients with the insurance aspect first and explain how the policy can be of an advantage for retirement funds and other investments.

What is the difference between Universal Life Insurance and Whole Life Insurance?

A Whole Life policy is a bundled premium plan and guarantees benefits for the life of the insured. There are two forms of whole life insurance: participating and non-participating. In a participating policy, the insurance company pays dividends which accumulates wealth and increases the death and investment benefits that you can borrow against to supplement your retirement. The insurance company manages that account conservatively and pays a consistent amount of dividends.

In non-participating policies, the policyholder does not receive dividends; however, premiums are often lower.

On the other hand, Universal Life is unbundled. Clients know exactly what their insurance cost is and this coverage allows flexibility to choose the investment component of their policy. However, there are no guarantees, and your investments may be at a higher risk based on the performance of your choices. There are several drawbacks to Universal Life insurance, but it could be a good option for someone who wants a guarantee of coverage and is willing to manage the benefit of self-directed investments.

Can I withdraw my cash value from Universal Life?

Yes, you can withdraw from the cash value of the policy but before you do make sure you fully understand how it works.